Section 2: Draft Auckland 30 Year Infrastructure Strategy Long-term Plan 2015-2025 (LTP)

 
Section 2: Draft Auckland 30 Year Infrastructure Strategy Long-term Plan 2015-2025 (LTP)
Section 2: Draft Auckland 30 Year Infrastructure Strategy

Section 2:
Draft Auckland 30 Year Infrastructure
Strategy
Long-term Plan 2015-2025 (LTP)

Prepared under Section 101B of the Local Government Act for the following
Auckland Council infrastructure:
    Water
    Wastewater
    Stormwater
    Transport
    Community facilities and open space

                                                     Auckland Council Long-term Plan 2015-2025
                                                                         Supporting Information
Section 2: Draft Auckland 30 Year Infrastructure Strategy Long-term Plan 2015-2025 (LTP)
Section 2: Draft Auckland 30 Year Infrastructure Strategy

       Contents
Executive Summary ........................................................................................................................................ 3
1      Introduction ............................................................................................................................................ 4
2      Purpose .................................................................................................................................................. 5
3      The Auckland context............................................................................................................................. 8
    3.1       An overview of our infrastructure assets .................................................................................. 8
    3.2       Auckland Council’s Role in Providing Infrastructure ............................................................... 9
    3.3       Demographic context .................................................................................................................. 9
    3.4       Auckland’s Physical Context ...................................................................................................... 9
    3.5       Auckland’s Strategic Context ................................................................................................... 10
4      Significant Infrastructure Issues ........................................................................................................... 12
    4.1       Drivers of demand for infrastructure ....................................................................................... 12
    4.2       Funding Constraints .................................................................................................................. 14
5      Our infrastructure strategy ................................................................................................................... 16
    5.1       The Auckland Plan Development Strategy Implementation and Spatial Prioritisation .... 16
    5.2       Mechanisms to help manage demand for infrastructure...................................................... 17
    5.3       Smart / Transformative infrastructure investment ................................................................. 17
    5.4       Strategic long-term network/systems planning ..................................................................... 18
    5.5       Efficient and innovative asset management .......................................................................... 18
    5.6       New funding and delivery mechanisms .................................................................................. 19
    5.7       Monitoring Programme for Growth .......................................................................................... 20
6      Infrastructure investment summary...................................................................................................... 21
    6.1       Total Expenditure ....................................................................................................................... 21
    6.2       Major Transport Capital Works Programme .......................................................................... 21
    6.3       Major Wastewater Capital Works Programme ...................................................................... 30
    6.4       Major Water Supply Capital Works Programme ................................................................... 34
    6.5       Major Stormwater and Flood Control Capital Works Programme ...................................... 39
    6.6       Major Community Facilities Capital Works Programme ...................................................... 41
    6.7       Major Public Open Space Capital Works Programme ......................................................... 43
Appendix 1 – Key Assumptions .................................................................................................................... 46
Appendix 2 – Transport renewals ................................................................................................................. 55

Auckland Council Long-term Plan 2015-2025
Supporting Information
Section 2: Draft Auckland 30 Year Infrastructure Strategy Long-term Plan 2015-2025 (LTP)
Section 2: Draft Auckland 30 Year Infrastructure Strategy

Executive Summary
Infrastructure provides a foundation for building strong and resilient communities. This Strategy sets out the
Auckland Council’s existing infrastructure base for water, wastewater, stormwater, community facilities and
parks and open space. The Strategy then identifies the significant pressures on this infrastructure demand led
by; Auckland’s growth, demographic change, service level expectations, environmental sustainability, resilience
and the condition of existing assets. It also recognises that this infrastructure demand is happening in an
environment where there are funding constraints.
The Auckland Plan sets in place a 30 year vision for Auckland to be the world’s most liveable city. This strategy
builds on this vision, providing a package of mechanisms that will respond to the challenges that Auckland
faces. This is illustrated in the following diagram.

        Growth
                                       Infrastructure demand

                                                                                                Funding constraints
     Demographic                                               Trade-offs and
       changes                                                 key strategies

      Service level
      expectations

     Environmental                                             Infrastructure plans
     sustainability
                                                                 and tools for the
                                                                   world’s most
      Resilience
                                                                   liveable city

     Asset condition

The package of policy responses developed as part of the Strategy comprises:
1.   The Auckland Plan Development Strategy Implementation and Spatial Prioritisation
2.   Management of the demand for infrastructure
3.   Smart investment / transformative infrastructure investment
4.   Infrastructure provision aligned across the networks
5.   Efficient and innovative asset management
6.   Additional funding tools
7.   A monitoring programme for growth.
The Strategy then sets out an investment summary for the period 2015-2045 and the major infrastructure
projects that have been identified during this period.

                                                                                      Auckland Council Long-term Plan 2015-2025
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Section 2: Draft Auckland 30 Year Infrastructure Strategy Long-term Plan 2015-2025 (LTP)
Section 2: Draft Auckland 30 Year Infrastructure Strategy

1 Introduction
Auckland is a young city with a bold vision – to become the world’s most liveable city. Auckland consistently
ranks highly for its quality of life and is working to build a reputation as a city which is business friendly. The
success of Auckland is important for the success of New Zealand. As one integrated council we now have a
greater ability to plan and deliver the infrastructure that is needed across Auckland as a foundation for our
communities, homes and workplaces.
Auckland is supported by a broad range of infrastructure networks based on pipes, reservoirs, dams, treatment
plants, roads, footpaths, cycleways and public transport services, parks and community facilities. This core
Auckland Council infrastructure is the focus on this strategy. This infrastructure underpins Auckland as a city;
protecting public health, by providing clean drinking water and ensuring our waste is removed and treated. It
facilitates the movement of people and goods enabling economic and social exchanges essential for the
viability, health and development of Auckland. It provides the public spaces and community spaces that benefit
the social and cultural wellbeing of Aucklanders. Infrastructure also protects our homes and businesses from
flooding and inundation from the sea, while working to reduce the harmful effects of urban activity on the natural
environment. Investing in infrastructure has a direct benefit on Auckland’s and New Zealand’s economy and
enables Auckland’s businesses to be internationally competitive.
Decades of underinvestment combined with rapid growth, however, means that Auckland now faces substantial
demand for new and expanded infrastructure. Rising community expectations, changing demographics, the
need to improve environmental sustainability and resilience to natural disasters all add to this demand. At the
same time, we also need to look after Auckland’s large existing asset base.
Infrastructure is a “big ticket” item and the cost of meeting this demand is substantial. Many of the projects that
will be needed to underpin Auckland’s ongoing success as it grows will require significant capital investment and
on-going operational costs. However for Auckland to be successful, it must be also an affordable place to live,
work and do business. Despite significant funding streams from central government and potential opportunities
to partner with the private sector, this will inevitably mean that funding for Auckland infrastructure will be
constrained.

Auckland Council Long-term Plan 2015-2025
Supporting Information
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Section 2: Draft Auckland 30 Year Infrastructure Strategy

2 Purpose
Articulate how we will manage infrastructure demand
A key purpose of this strategy is to set out how we are going to manage the major drivers of demand for
Auckland’s infrastructure over the next 30 years within a constrained funding environment. This is illustrated in
the following diagram (figure 1). Auckland has a bold vision to be the world’s most liveable city. Achieving this
will require us to prioritise in order to make the most of available funding.

             Growth

                                              Infrastructure demand

                                                                                                        Funding constraints
          Demographic                                                 Trade-offs and
            changes                                                   key strategies

          Service level
          expectations

         Environmental                                                Infrastructure plans
         sustainability
                                                                        and tools for the
                                                                          world’s most
           Resilience
                                                                          liveable city

         Asset condition

Figure 1 Auckland’s Infrastructure Strategy

Provide a long-term perspective
Infrastructure assets have long-term impacts as many of their life spans are greater than the 30 year term of this
strategy. Many also are transformational in nature in that they are likely to influence the form of our city in
addition to the way it functions. As illustrated in the diagram below (figure 2), history demonstrates that past
infrastructure projects have had a powerful influence on Auckland’s current urban form in terms of where
housing and businesses are located, and how future growth can be accommodated. For these reasons it is
important that we make the right decisions about what infrastructure we need, where we need it, and when it is
needed.

                                                                                        Auckland Council Long-term Plan 2015-2025
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Section 2: Draft Auckland 30 Year Infrastructure Strategy Long-term Plan 2015-2025 (LTP)
Section 2: Draft Auckland 30 Year Infrastructure Strategy

Figure 2 Auckland City Shaping Projects and Urban Form

This strategy therefore focuses on understanding our medium to long-term infrastructure requirements, which
would subsequently inform our shorter term (Long-term Plan) decision-making. By taking a long-term view, we
can assess whether there are potential investment gaps or affordability issues beyond the 10 year horizon of the
Long-term Plan. Signalling our longer term view also provides direction to the wider community, including other
infrastructure and skills training providers, which informs and supports their long term planning.

Coordinate effective and efficient infrastructure management
Infrastructure investment also delivers a broad range of wider benefits to Auckland. Infrastructure provides a
foundation for Auckland. Beyond the immediate impact on the land use patterns of Auckland, it has wider
economic, environmental, social and cultural benefits as shown in the following table.
Table 1 Wider Benefits of Infrastructure
Economic Benefits                                              Environmental Benefits
   Improves international competiveness                          Minimises impacts on the environment
   Increases business activity                                   Enables environmental standards to be met
   Increases attractiveness for investment                       Increases resilience to climate change and natural
   Attractiveness for people living in or visiting Auckland       hazards

Auckland Council Long-term Plan 2015-2025
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Section 2: Draft Auckland 30 Year Infrastructure Strategy

Social Benefits                                            Cultural Benefits
   Greater social cohesion                                   Increases investment opportunities for Māori
   Improves access to jobs, education community and          Supports papakaianga
    recreation facilities                                     Strengthens     community      participation,   spirit   and
   Increases opportunities for children and young people      resilience
   Provides public health benefits

This strategy will help ensure that our investment in infrastructure can achieve the potential benefits as
efficiently and effectively as possible. This will require coordination. This strategy aims to be a focal point for
coordinating and integrating individual plans for individual assets and providing a coherent perspective across
asset groups.

                                                                               Auckland Council Long-term Plan 2015-2025
                                                                                                   Supporting Information
Section 2: Draft Auckland 30 Year Infrastructure Strategy Long-term Plan 2015-2025 (LTP)
Section 2: Draft Auckland 30 Year Infrastructure Strategy

3 The Auckland context
3.1 An overview of our infrastructure assets
Auckland Council and council-controlled organisations have an extensive infrastructure portfolio, with assets
estimated at over $29 billion. This ranges from the pipes under the ground to the roads and community
facilities. In some cases assets serve multiple purposes for example, stormwater reserves which serve as open
space. Some key information about each of the infrastructure types dealt with in this strategy is provided
        1
below .
Transport, including roading, footpaths, parking and public transport
                                                                                                          .
Auckland’s transport system is one of the region’s most valuable assets, at $15 billion. This includes; 7,227km
of roads, 6,879km footpaths, 1021 major bridges and culverts, 42 rail stations, 27 park and ride sites, 21
wharves and ferry facilities, 171 off-street car park sites and 19 parking buildings.
Auckland Transport is a council-controlled organisation which is responsible for the development, operation and
                                                              2
management of all of Auckland’s local land transport services . Integrated planning with other transport
providers such as the New Zealand Transport Agency (NZTA) and Kiwirail is a key role. The primary sources of
funding for Auckland Transport are the council (60 per cent) and the New Zealand Transport Agency (28 per
cent) with the remaining 12 per cent coming from operating revenues including user charges and fees.
Water supply and wastewater
Watercare Services Limited is a council-controlled organisation responsible for the provision of Auckland’s safe
and reliable drinking water and the treatment of wastewater to a high standard and in an environmentally
                     3
sustainable manner .
Watercare has $8.4 billion worth of assets including; 12 Dams, 14 bores and springs, 3 river sources, 21 water
treatment plans, 84 reservoirs, 8,800km clean water pipes, 90 water pump stations, 7,700km wastewater pipes,
537 wastewater pump stations and 20 wastewater treatment plants. During 2014 Watercare provided
326million litres of water each day on average.
Watercare is required to fund its own activities as it does not receive any funding from Auckland Council or
central government.
Stormwater and flood control
Auckland Council has $4 billion of stormwater assets including 6,000km of stormwater pipes, 20,000km of
streams, 150,000 manholes and 370 ponds and wetlands. The council manages and operates this stormwater
infrastructure ensuring that stormwater flows are managed cost-effectively and adverse impacts on public health
and safety, the environment, public and private property and the economy are reduced. The water quality of our
harbours and waterways is particularly related to stormwater management. Stormwater and flood control are
funded out of the council’s general rate.
The council works to minimise the potential for damage to both Auckland’s natural and built environments and to
limit the disruption in basic services should flood events happen.
Parks, community and lifestyle
Auckland Council has $5 billion worth of parks, community and lifestyle assets, this includes; 26 regional parks,
2,838 local parks, 241 sports parks, 73 libraries, 51 community houses/centres, 41 recreational facilities and 30
art facilities.

1
  For more detailed information please refer to the Integrated Transport Programme (ITP) and Asset Management Plans for Watercare,
Stormwater, Parks and Open Space.
2
  Excluding state highway network and the rail corridor which is the responsibility of the New Zealand Transport Agency and Kiwi Rail
respectively.
3
 with the exception of Papakura, where Veolia Water retails water and wastewater services to homes and businesses under a franchise
agreement

Auckland Council Long-term Plan 2015-2025
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Section 2: Draft Auckland 30 Year Infrastructure Strategy

3.2 Auckland Council’s Role in Providing
Infrastructure
The council operates within a legislative and regulatory framework that includes the Local Government Act the
Resource Management Act, the Land Transport Management Act, as well as other national standards and
policy statements; these direct the way in which the council invests in and manages infrastructure.
Auckland Council has a number of roles in the planning and delivery of infrastructure and is a major investor
across a broad range of infrastructure types. It also has a regulatory role; designating, consenting, monitoring
and developing new planning rules and policy for infrastructure.
It is also a facilitator, working with other infrastructure providers to deliver affordable services to residents and
businesses.
           Investor/Provider                              Facilitator                                 Regulator

   Direct investor in and provider of        Promotes private investment in             Processes resource consents,
    infrastructure                             Auckland                                    notices of requirement, outline
   Contracting of infrastructure             Organises industry advisory groups          plans, and plan changes
    services to third parties                  and panels                                 Produces new planning regulations
   Organiser of private public               Works with communities to assist in         e.g. Proposed Auckland Unitary
    partnerships                               infrastructure development                  Plan
   Provides funding to community             Develops regional planning
    groups                                     frameworks (within a national
                                               context) for integrated land-use and
                                               infrastructure
Table 2: Auckland Council’s role in providing infrastructure

3.3 Demographic context
Auckland has diverse demographic characteristics and different parts of Auckland have different demographic
characteristics. Auckland is home to over 180 ethnicities and almost 39 per cent of Aucklanders were born
outside New Zealand. Whilst the majority of Auckland’s population is New Zealand European (59 per cent), we
also have the largest Polynesian population of any city of the world (15 per cent), around 11 per cent of our
residents identify as Māori and 23 per cent are Asian.
Like many other parts of New Zealand Auckland’s population is aging and between 2006 and 2013 we
experienced a 27 per cent increase in the number of residents aged 65 years and over (an additional 34,608
older people). However, our population is, on average, younger than the rest of New Zealand and this is
particularly apparent in some parts of Auckland where there are high concentrations of children and young
people.

3.4 Auckland’s Physical Context
Auckland covers almost 500,000ha, from Te Hana in the north, to Waiuku on the edge of the Manukau Harbour
in the south. It is home to a range of outstanding natural features. These defining features contribute
significantly to Aucklanders' quality of life but also present some challenges for Auckland’s infrastructure.
The shape and nature of Auckland’s urban form has been significantly influenced by its setting and natural
features. Auckland is built on a narrow isthmus bordered by the Waitematā and Manukau harbours.
Despite being New Zealand’s largest city over 70 per cent of Auckland’s landmass is rural. These rural areas
vary from productive pastures for livestock, agriculture, horticulture and equestrian activities, to forestry areas
and areas of protected native bush.

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Section 2: Draft Auckland 30 Year Infrastructure Strategy Long-term Plan 2015-2025 (LTP)
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Much of Auckland is built on the Auckland Volcanic Field which covers 360 square kilometres and contains at
                                                                                                    4
least 50 volcanoes. The geology of Auckland means that some areas are prone to land instability . There are
differences in ability of soils to drain and over time Auckland’s land surface has been extensively modified by
urban development, altering natural water drainage.
Auckland has approximately 2,000km of coastline. Our coastal environment is diverse and includes developed
urban areas, natural estuaries, harbours and bays. There are sheltered white sand beaches to the east
contrasting with rugged black sand beaches in the west. The coast is a desirable location for development but
has challenges including storm surge, coastal instability, high winds and tsunami.
Our climate is changing. This may result in changes to temperature, rainfall and sea level. Over time, climate
change will place pressure on our infrastructure which will need to be able to respond to different environmental
effects such as extreme weather patterns.

3.5 Auckland’s Strategic Context
The Auckland Plan
The Auckland Plan is the strategic guide for Auckland’s future over the next 30 years. It sets a shared vision for
Auckland as the world’s most liveable city based on a quality, compact approach to accommodating projected
growth.
The Auckland Plan describes outcomes needed to achieve this vision by 2040, highlighting six transformational
shifts where a ‘step-change’ is needed, as shown in Figure 3.

Figure 3 Auckland Plan Vision, Outcomes and Transformational Shifts

Three of the six transformational shifts - the move to outstanding public transport, radically improving the quality
of urban living and strongly commit to environmental action and green growth - relate closely to infrastructure
provision and can be seen as enablers of the other transformations. Investment in these areas has the potential
to drive change across environmental, economic, social and cultural outcomes.
Aucklanders have expressed a clear desire to improve these outcomes. This translates into greater demand for
new infrastructure as well as higher levels of service from existing infrastructure. As noted in the issues section,
this will have impacts in terms of the funding that would be required to meet those expectations. Delivery of the
Auckland Plan will be supported and enabled by a range of core strategies and plans; some such as the
Economic Development Strategy are already in place, others such as the Proposed Auckland Unitary Plan are
currently in development.

4
  Portions of the Northland Allochthon feature north of Albany (which can present significant slope stability and site development issues).
Parts of the south are characterised by Holocene Alluvium which typically comprises highly compressible soft to firm organic soils. It often
includes layers of peat (typically considered unsuitable or difficult to construct over).

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Commitment to Māori
Auckland Council is committed to meeting its responsibilities under Te Tiriti o Waitangi/the Treaty of Waitangi
and its broader legal obligations to Māori under the Local Government (Auckland Council Act) 2009, the Local
Government Act 2002 and the Resource Management Act 1991 and associated legislation. Māori have a
special relationship with Auckland’s physical and cultural environment. Preservation of the mauri or life essence
of water and waterways is a matter of great importance to Māori and is an issue that is central to many of
Auckland’s infrastructure projects. The Auckland Plan acknowledges that it will work to achieve Māori
aspirations through partnership and active engagement in the delivery and supply of infrastructure.
Subsequently, the Māori Responsiveness Framework has been developed to enhance and guide how the
council, including council-controlled organisations, work.
The Housing Accord and Special Housing Areas
Auckland Council and central government entered into the Auckland Housing Accord in September 2013 to help
tackle Auckland’s housing challenges in terms of adequate supply and affordability. Through the Accord and
associated legislation, Auckland Council’s Housing Project Office (HPO) has been tasked with the identification
and processing of applications associated with Special Housing Areas (SHAs). SHAs involve fast tracked
planning processes to deliver the agreed housing targets in the Accord. Infrastructure availability is a critical
factor in considering SHA applications.
Civil Defence and Emergency Management
Auckland Council has a statutory role in planning for civil defence and emergency management (CDEM) to
meet the requirements of the CDEM Act 2002. This planning employs a resilience approach for infrastructure,
including project assessment for the impact of various hazards on Auckland's infrastructure, identifying ways to
reduce these impacts, and working collaboratively to increase preparedness. This approach will be supported
through the Infrastructure Strategy. CDEM also assists Auckland through resilience building to support the
community when the capacity of infrastructure is exceeded, for instance in storm events.

                                                                            Auckland Council Long-term Plan 2015-2025
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Section 2: Draft Auckland 30 Year Infrastructure Strategy

4 Significant Infrastructure Issues
The overarching infrastructure issue facing Auckland over the next 30 years is how to respond to the various
demands on infrastructure given the funding constraints we face. Our response needs to take into account the
long-term perspective and align across infrastructure types.
Projecting future demand for infrastructure is critical to ensuring that the right level of investment is made in the
right infrastructure, in the right locations at the right time. Not doing this will significantly affect the council’s
ability to effectively and affordably deliver new infrastructure as well as maintain existing infrastructure.

4.1 Drivers of demand for infrastructure
Auckland’s growth
Over the next 30 years Auckland is expected to experience significant population growth, with our population
                                         5
projected to grow by over 716,000 people . This level of growth will place significant pressure on the capacity of
existing infrastructure and create demand for new infrastructure.
The scale and speed with which our population grows over the next 30 years in combination with when and
where across Auckland this growth occurs will impact on infrastructure needs and costs. Delivering
infrastructure at the right scale, in the right locations and at the right time to accommodate this level of growth
will be challenging.
Poor alignment between the location and timing of growth and infrastructure investment can lead to
infrastructure networks that are over-stressed and unable to deliver good outcomes, or to assets which are
under-utilised, or to communities that do not have the right infrastructure at the right time.
While development contributions can to some extent be used to fund the cost of providing growth-related
infrastructure, this mechanism can only help fund the initial capital cost of the infrastructure rather than funding
the full lifecycle and then the replacement cost of the infrastructure. In addition, increases in development
contribution charges may impact on housing costs and may thereby have adverse consequences for housing
affordability.
Demographic change
Auckland’s demographic characteristics contribute to the thriving, cosmopolitan nature of Auckland. However,
different demographic groups have different needs and preferences, for example some groups have a greater
need for public transport services than others, and this affects demand for infrastructure and services.
The demographic characteristics of Auckland’s communities have changed and will continue to change over
time and as our communities change demand for infrastructure and services will change. For example,
recreational preferences are likely to change and diversify over time, influencing the way in which our parks,
sports fields and leisure centres are used in the future. We will need to be agile and flexible and respond to
changing preferences and manage competing demands for how our assets are used.
Different demographic groups also have a differing capacity to pay for infrastructure and services. As our
population ages an increasing proportion will, for example, be more reliant on fixed incomes to absorb increased
costs of services.
Service level expectations
Even before the 716,000 anticipated additional people arrive in Auckland over the next 30 years, there is a
significant gap in between the service levels Aucklanders expect and what our current infrastructure can deliver.
Nowhere is this more prominent than in the public transport and arterial roading networks, despite significant
catch-up investment in the last 5-10 years. Similarly, there are existing properties with known flood risks and an
expectation that these will be rectified. In addition, expectations for Auckland’s arts and community centres,
playgrounds, sportsfields and our walking and cycling networks are all rapidly increasing.
Prior to the amalgamation of Auckland Council, there were different approaches to the provision of infrastructure
and this has resulted in comparative gaps of provision or in some cases in duplication across the region. This

5
    Source: Auckland Council Long Term Growth Data, September 2014.

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means that different parts of the region have different levels of service and differing access to some types of
infrastructure and associated services.
Environmental sustainability
Auckland benefits from its location and proximity to a number of important natural areas and environments. Our
environment is an essential part of our identity, our economy, and the way we live. However, urban
development and the age and quality of our infrastructure can have a detrimental effect on our natural
environment and on public health; for example, increased stormwater runoff can cause erosion of our streams
impacting on water quality.
Our existing infrastructure can at times, fail to meet current environmental standards. Expectations about how
we treat our environment and national environmental standards are changing – there will be costs associated
with meeting these.
The Auckland Plan recognises that a strong commitment to environmental action and green growth is required
as the region develops. Infrastructure has a strong role in delivering on this commitment. To achieve this, the
council’s networks and assets will need to be planned, designed, and operated in a way which supports quality
compact growth, reduces resource use and assists in generating positive behaviour change in Aucklanders.
The Auckland Plan makes a commitment towards the implementation of water sensitive design, which will affect
the ongoing planning and operation of our networks.
Resilience
Auckland’s quality of life, health and economic wellbeing are reliant on infrastructure. The impact of
infrastructure failure can include asset damage, cost of repair, loss of services or access, and resulting business
and social disruption.
Infrastructure failure can result from network failures, such as the 1988 Auckland city centre power outage
caused by the failure of a cable, or due to the impacts of natural hazards as highlighted by the Canterbury
earthquake sequence.
Within the Auckland region, there are a number of existing and potential natural hazards which pose a risk to
the safety and functioning of our infrastructure networks. Some of these hazards, such as flooding, coastal
inundation, land instability and storms occur with greater frequency than others. In the future, weather related
events are expected to increase in frequency and intensity due to climate change and coastal hazards will
impact progressively inland from the areas currently affected as a result of of sea level rise. Auckland is also
subject to geological hazards, as a result of our city’s location on top of the Auckland Volcanic Field, the effects
of volcanic ash from other North Island volcanoes and minor earthquakes.
The vital role that infrastructure plays in our community means Auckland Council has a responsibility to plan for
and invest in the resilience of its infrastructure. Resilience can be improved by reducing vulnerabilities and
strengthening our adaptive capacity or ability to adapt to shocks and stresses. In this context resilience can be
achieved by:
           Managing Risks: where vulnerabilities and hazards are identified, and risks are managed through
            planning and operational measures; and,
           Building Adaptive Capacity: where social infrastructure is strengthened and governance and decision
            makers are focused on improving the adaptive capacity of the community and businesses, including
            infrastructure providers.
This Strategy focuses on managing risks. Building adaptive capacity, including strengthening of soft
infrastructure networks such as improving preparedness and self-reliance, is not addressed in this Strategy but
is acknowledged as an important element of building societal resilience.
Investment will be required in order to reduce risks and vulnerabilities of infrastructure building resilience into
our infrastructure networks will require investment. Building redundancy or spare capacity into our systems,
relocating infrastructure which is at significant risk of hazards, strengthening existing assets (e.g. seismic
strengthening) to withstand hazards or building assets which are less vulnerable to hazards, affects how we
                                       6
invest and operate our infrastructure .

6
    Mamula-Seadon L, Auckland Council 30 Year Infrastructure Strategy, Infrastructure Resilience Technical Paper, October 2014

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Ensuring that we do not locate new communities and supporting infrastructure in areas at significant risk from
hazards will affect where our city grows in the future and the form and affordability of development.
Other relevant work which complements the Infrastructure Strategy and addresses the management of
infrastructure risks includes:
        the Auckland Engineering Lifelines Group;
        the Natural Hazards Risk Management Action Plan;
        the Low Carbon Auckland Action Plan;
        the Climate Change Adaptation Guidelines; and
        the Civil Defence Emergency Management Group.
All of these workstreams will contribute to addressing the impacts of climate change and tools needed, including
infrastructure investment, to improve Auckland’s response to the threat of climate change and uncertain energy
supply. This is particularly critical for our transport networks, with transportation generating the majority of
Auckland’s emissions. Together they contribute to improving Auckland’s infrastructure and societal resilience.

Condition of existing assets
Infrastructure, particularly aging infrastructure, can also fail even in optimal conditions. Regular maintenance,
renewal and replacement of our networks and assets are critical to ensure that they remain reliable and stable
foundations to our region.
Historic underinvestment in infrastructure has been an issue for Auckland. In addition to capacity issues, this
also means that some of our assets are no longer in optimal condition. These assets may require investment to
ensure they can meet current and future capacity, are fit for purpose, resilient and of a suitable standard. Key
assumptions about the current state of our infrastructure assets are included in Appendix 1.
For many types of infrastructure assets, the most cost effective asset management strategy is to minimise
whole of life costs through preventative planned renewals and maintenance. This is focussed on managing the
assets to have a suitable condition profile to deliver levels of service and user satisfaction while minimising risk
of failure. This approach is primarily to protect the current investment in the networks. At present, most asset
categories such as our roads, bridges and parts of our community building portfolio generally have a suitable
condition profile because of this preventative planned approach.
However, this approach may not be possible across the whole asset portfolio in the short term given current
funding constraints. In this case, there will be some short to medium term risk of reduced levels of service and
user satisfaction and increased risk of failure. It may also lead to some increased whole of life costs in the
medium to long term through increased maintenance and remedial works. This is the case for our transport
assets as discussed in Section 5.5 and Appendix 2.
Often when new infrastructure assets are provided, particularly for community infrastructure, there is a tendency
to retain the old asset in addition to the new even if it is not needed to achieve the intended level of service.
Retaining these old assets can unnecessarily add to operational and renewal requirements.

4.2 Funding Constraints
While Aucklanders have expressed clear support for the creating the world’s most liveable city, and in particular
expressed a clear desire to fix Auckland’s transport problems and improve the quality or Auckland’s urban
environment, they have also clearly told us they have no appetite for large increases in rates or the council debt.
The council has access to significant funding streams from central government. It can raise revenue through
development contributions, targeted rates and other mechanisms such as fees and charges, and has potential
opportunities to partner with the private sector. However, it will remain challenging to balance Aucklanders’
aspiration for progress against their need for affordability. For transport alone, the gap between the 30 year
funding requirement identified in the Auckland Plan and currently available funding sources was estimated to be
$12 billion.
As Auckland grows the full life-cycle cost of maintaining our infrastructure networks will increase over the next
30 years and we need to continue to look for effective and efficient approaches to maintaining and making the

Auckland Council Long-term Plan 2015-2025
Supporting Information
Section 2: Draft Auckland 30 Year Infrastructure Strategy

best use out of our assets. However, the gap between the demand for infrastructure and our funding constraint
is so large that efficient and innovative infrastructure management will not be sufficient to solve the problem by
itself.
What we need is a bold strategy to:
       manage growth and demand
       ensure investment in the right projects that have the potential to be truly transformative, and
       allow the significant trade-offs between cost, risk and service levels to be adequately considered and
        safely managed.
In addition, we need to consider some new approaches to funding.

                                                                             Auckland Council Long-term Plan 2015-2025
                                                                                                 Supporting Information
Section 2: Draft Auckland 30 Year Infrastructure Strategy

5 Our infrastructure strategy
As part of developing this document a wide range of options for managing Auckland’s infrastructure demand
                               7
were identified and assessed . From this work seven key mechanisms were chosen which form a package of
responses to the significant infrastructure demands and the funding constraints outlined above. These are:
1.     The Auckland Plan Development Strategy Implementation and Spatial Prioritisation
2.     Management of the demand for infrastructure
3.     Smart investment / transformative infrastructure investment
4.     Infrastructure provision aligned across the networks
5.     Efficient and innovative asset management
6.     Additional funding tools
7.     A monitoring programme for growth
Some of these mechanisms are already being used as part of the council’s current infrastructure management
practices. Particular mechanisms may address multiple issues, or alternatively may be more relevant to specific
classes of infrastructure; for instance, demand management is an approach used within transport, water and
wastewater rather than for community infrastructure. Some mechanisms are likely to have greater relative
impact, however brought together and applied over the 30 year period they all combine to support Auckland
Council’s infrastructure strategy for the next 30 years.

5.1 The Auckland Plan Development Strategy
Implementation and Spatial Prioritisation
Addresses: growth, resilience, environmental sustainability, funding
Auckland’s funding constraints mean that we need to leverage off existing infrastructure wherever possible, and
carefully plan for new growth and its likely implications for infrastructure. The Auckland Plan sets in place a
quality compact approach to growth that aims to ensure that this happens.
                                                                                                                8
In developing the Auckland Plan – several options for managing growth were considered These were publicly
consulted on and Aucklanders clearly signalled that they believed that taking a quality compact approach was
the best option. This approach focuses on making best use of land which has already been developed or
targeted for development, supplemented with well-managed expansion into appropriate greenfield areas. It will
provide for 60-70 per cent of growth (e.g., homes and jobs) within Auckland’s existing core urban area; with
30-40 per cent of growth occurring in new greenfield, satellite towns and rural and coastal towns. The approach
also recognises the importance of creating quality neighbourhoods and urban places where people want to live
and work and the staged release of greenfield land with the timely delivery of infrastructure.
Proposed Auckland Unitary Plan and Land Release Programme
While the Auckland Plan, particularly its Development Strategy, provides the overarching framework for our
infrastructure strategic planning, there is still further work required to put in place underpinning policies,
regulations and programmes.
The Unitary Plan, which is currently being developed, is the key mechanism that the council has to shape land
use, which can significantly influence the demand for existing and new infrastructure. Aligned to this will be the
development of a Land Release Programme which sets out sequencing and timing of future urban areas. This
will be significant as it will provide greater certainty for forward planning. Once completed, this programme will
assist longer term infrastructure planning, especially for infrastructure needs after 2025.
Spatial prioritisation

7
    The Options Paper for the 30 Year Strategy, sets out the options that were considered, the issues they address and the implications
8
    See Auckland Plan Scenario Evaluation Workstream Technical Paper, September 2011

Auckland Council Long-term Plan 2015-2025
Supporting Information
Section 2: Draft Auckland 30 Year Infrastructure Strategy

Spatial prioritisation is being introduced as part of the 2015-2025 LTP. It provides a process for targeting
investment over time so that Auckland Council’s limited resources are focused into areas that will enable
multiple outcomes, including more jobs, more homes, greater mobility, connected communities, improved
recreation and a quality environment. It aligns investment with the Auckland Plan’s Development Strategy the
transformational shifts and considers SHAs. It acknowledges investment will still occur outside these spatial
areas focusing on key infrastructure requirements, optimising and completing existing investment, and enabling
and stimulating economic development.
Managing and maintaining the integrity of the various existing infrastructure networks and services is critical for
building capacity and resilience across the wider region to meet the demands of growth. From an
infrastructure perspective, the quality compact approach and spatial prioritisation will make better use of existing
infrastructure, increase the viability of public transport and mean Auckland is better able to prioritise and align
future infrastructure expenditure.
This should translate into greater productivity and economic growth with greater social and cultural vitality. It
also means our rural character and productivity will be maintained and negative environmental effects will be
reduced.
Forward Land and Infrastructure Programme (FLIP)
FLIP is a programme that assists the achievement of more detailed alignment between land use planning and
infrastructure delivery to ensure that the right things are in the right place at the right time and within budget. It
aims to improve integration of growth projections with land use plans and infrastructure delivery over time and
relies on greater information sharing and accessibility.

5.2 Mechanisms to help manage demand for
infrastructure
Addresses growth, resilience, environmental sustainability, service level expectations, funding

Our funding constraints mean that we will not be able to respond to all increases in infrastructure demand by
solely increasing the supply of infrastructure. Therefore, finding other ways to address demand for infrastructure
will be necessary.
Demand management is a planning approach used to minimise the need for new infrastructure. It refers to
measures which change behaviour such as pricing, taxes, use of speed and red light cameras, statutory
planning controls that are not based on infrastructure solutions but on policies, regulatory levers and incentives.
For example, Watercare is targeting a 15 per cent reduction in water consumption per capita from 2004 levels
by 2025. They plan to achieve this through consumer education and actively working with businesses to help
them better understand their water usage. Other key examples include user charges for refuse collection and
parking charges. The possible introduction of a motorway charge discussed in Section 5.6 below would also
have the potential to significantly change the demand for roading infrastructure in Auckland.

5.3 Smart / Transformative infrastructure
investment
Addresses growth, resilience, environmental sustainability
As noted previously, it is not possible to address Auckland’s future infrastructure needs through traditional
approaches of supplying more infrastructure in response to greater demand. To cope with our substantial
growth and our funding constraints, we will need to think differently about how we provide infrastructure. This
includes:
       Thinking about how infrastructure can shape growth and influence demand and ensuring that we invest
        in the right infrastructure to best manage growth and achieve our strategic goals
       Taking advantage of emerging new technologies over the next 30 years

                                                                               Auckland Council Long-term Plan 2015-2025
                                                                                                   Supporting Information
Section 2: Draft Auckland 30 Year Infrastructure Strategy

         Undertaking more holistic planning for infrastructure over a 30 year horizon and across asset groups.
Some infrastructure is critical to achieving our strategic goals and has extraordinary effects in terms of the
impact it makes on Auckland’s infrastructure network. Through our strategic and financial planning processes
Auckland Council has been identifying transformative projects that will be prioritised. A key example of such a
transformative project is the City Rail Link. This will fundamentally change the growth and infrastructure
landscape of Auckland, in a similar way to the original opening of the Auckland Harbour Bridge. It will in effect
bring parts of the south and the west of Auckland close to the centre, and equally bring the centre closer to the
                 9
south and west .
Infrastructure assets are often costly to plan, purchase or build and most of our assets have long lifespans over
which they must be managed and maintained. Technology is changing rapidly and there is little doubt that over
the next 30 years innovation and new technology will continue to drive societal change and will open up new
options for how we manage and build our infrastructure. Our planning for the future needs to ensure that we
retain the flexibility to respond to challenges and utilise new technology to allow us to deliver the outcomes
                                                                          10
sought from our infrastructure in different and more cost effective ways .
Many assets require significant forward planning to ensure that suitable land is secured in the right location and
often many years in advance of an asset being required or built. Purchasing land or property early is typically
more affordable and ensures that assets are located appropriately. Where there are network gaps in existing
urban areas it can be costly to purchase suitably sized and located sites.

5.4 Strategic long-term network/systems planning
Addresses growth, resilience, environmental sustainability, service level expectations, demographic change
This is the process of utilising a number of key strategies (e.g., the Communities Facilities Plan, Integrated
Transport Programme) to address challenges and issues at a network or system level. They consider the
contribution of the network/system in meeting the aspirations of the Auckland Plan and supporting strategies
and action plans, and take into account the management of assets. They also provide direction to Asset
Management Plans.
The potential benefits of addressing issues at a network/system level include, ensuring effective and efficient
management of assets, and allocating investment in new assets.

5.5 Efficient and innovative asset management
Addresses growth, resilience, sustainability, service level expectations, demographic change, asset condition
This approach will enable infrastructure programmes to be refined and optimised so they achieve the best value
for money from previous and new investments in terms of the level of service they deliver. There are four key
components to this approach. They are, in order of priority:
1     Operate, maintain and renew infrastructure optimally: This means we take a long-term view and
      consider impacts over the next 30-years and beyond. For our existing assets, this also means that instead
      of only focusing on the best time to repair or replace each individual asset, we develop plans that consider
      how these assets all work together as part of an interconnected network. We therefore seek to develop
      asset plans that will ensure the entire network of assets is managed in a way that is fit for purpose,
      minimises cost over the long-term and ensures that risks to service levels and public safety are acceptable
      both now and in the future.
      Where near-term funding constraints do not allow a long-term optimal approach to be employed, we will
      monitor the condition of our assets to ensure that risk levels remain acceptable and future asset
      expenditure requirements sustainable. Without significant additional funding, this is the case for our
      transport assets. The council’s proposed draft long-term budgets are therefore based on Auckland

9
  Further information about the City Rail Link project and the benefits it will deliver are included in Section 6.2 of this document and section
5.6 of the Supporting Information for the long-term plan Consultation Document.
10
   Discussion on two infrastructure project case studies which provide a high level understanding of the decision making process undertaken
and to provide lessons for future decision making are included in the technical paper Bentley J and Hay D, Auckland Council 30 Year
Infrastructure Strategy, Methodology for Future Decisions Technical Paper, September 2014

Auckland Council Long-term Plan 2015-2025
Supporting Information
Section 2: Draft Auckland 30 Year Infrastructure Strategy

      Transport moving towards a more targeted risk-based approach to managing our transport assets that aims
      to achieve acceptable levels of satisfaction while minimising risks to public safety.
      This approach would result in higher risk, potentially higher future operating expenditure requirements and
      a reduction in the current very high road maintenance standards to a level that is still quite high compared
      to other cities internationally. Specifically, road maintenance standards for all urban roads (as measured by
      smooth travel exposure) are projected to decrease from about 83 per cent to 77 per cent over the next
      seven years, and then remain at about 77 per cent. Auckland Transport’s condition modelling tool indicates
      this approach would result in the proportion of assets in poor to very poor condition steadily increasing over
      the next 20 years but then stabilising after that. We therefore consider that while this approach may not be
      optimal over the long-term, it is prudent and sustainable. Auckland Transport will use regular monitoring,
      analysis and prioritisation to actively managing the risks over time. Further information on Auckland
      Transport’s approach to managing its renewals requirements over the next 30 years is included in
      Appendix 2.
2     Make better use of networks: Experience with managing infrastructure systems suggests the best returns
      from investment can often be achieved through optimal management and use of existing assets. Examples
      of network optimisation activities include: safety schemes; changes to clearways and other parking
      management measures; “tuning” traffic signalling systems; speed limit reviews and minor upgrades to
      existing arterial roads and local roads. In terms of parks and community infrastructure, making better use of
      the network may mean disposing of poorly utilised or non-performing assets in order to fund new assets. It
      may also mean closing or disposing of an old asset when a new asset is created. Because funding
      constraints mean that we will not be able to maintain all of our parks and community assets in their optimal
      condition, we will review these asset portfolios to ensure that we are achieving best value for money in
      terms of service levels across each portfolio.
3     Manage demand efficiently and safely: Demand management refers to measures which change
      behaviours such as education, pricing, taxes, statutory planning controls that are not based on
      infrastructure solutions but on policies, regulatory levers and incentives. Our asset planning processes will
      consider opportunities to address demand through these kinds of non-asset based solutions.
4     Invest in new infrastructure, services and technology: Major transport improvements will be crucial to
      meet increasing demand associated with growth, and to maintain good levels of service for freight and
      commercial vehicles. The Integrated Transport Programme undertakes a prioritisation process for new
      investment to clearly link the relative priority of projects to the strategic direction of the Auckland Plan.
      When we invest in new libraries and community facilities, we will focus on the provision of multi-use
      facilities rather than just expanding the existing network of separate facilities.

5.6 New funding and delivery mechanisms
Addresses growth, resilience, environmental sustainability, funding
Non-traditional ways to fund and deliver infrastructure are being investigated. This includes options such as
public-private partnerships; private sector funding or provision; new funding mechanisms such as regional fuel
taxes; congestion charging; and tax incremental financing; user charges; sponsorship opportunities; and
partnership or collaborative approaches. Using such options may be able to deliver infrastructure that might not
otherwise be possible.
A key issue for consultation as part of the 2015-2025 Long-term Plan is whether Aucklanders support increased
investment in Auckland’s transport network, and are prepared to pay more to support the investment required. A
group of independent experts have worked out two ways Auckland could fund this additional investment. One
option involved increases in fuel taxes and higher overall rates increases each year, while the other involves a
motorway user charge of around $2 each time people entre Auckland’s motorway system. Government support
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and changes to legislation would be required under either of these two options .
Another example is SkyPath, one of the first Public Private Partnership (PPP) type projects that Auckland
Council is evaluating. The SkyPath proposal, for providing cycling and walking over the Waitematā Harbour, is

11
 Further information about these key choices for transport are included in Section 11 of the Supporting Information for the long-term plan
Consultation Document.

                                                                                            Auckland Council Long-term Plan 2015-2025
                                                                                                                Supporting Information
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