Infrastructure Strategy Impact – Medium – increased asset failure will increase repair & maintenance costs Assumption; Labour and materials will continue to be available within the constraints and decrease the level of service provided. The asset renewal programme will need to and prices experienced to date be accelerated. Risk: Civil engineering labour, plant and materials have been in very high demand Natural Hazards firstly through the Christchurch re-build and recently through the North Canterbury Risk: the frequency and size of natural hazard events will be within the range Infrastructure Re-build of State Highway 1. anticipated Level of Uncertainty: Low Level of uncertainty – Low. Contingency plans have been made for very severe events Impact: Current procurement costs have been high additional pressures are not Impact – high. Significant disruption of service, high costs of emergency response, expected. significant long term damage to the fabric of the infrastructure. In addition to the general assumptions that may affect all Council services there are Climate Change also asset specific assumptions Assumption: Climate change will progress in line with the current projections from Water Supply Assumptions and Risks Ministry for Environment Assumption:No further Government subsidy will be available for water treatment Risk: More extreme weather conditions or rising sea level will impact the infrastructure projects. as described above Risk/opportunity: The subsidies previously offered by the Ministry of Health to assist Level of Uncertainty: Low low decile communities with the costs of upgrading their water supplies have now ceased. There is no indication that further subsidy schemes will become available. Impact: Remedial programmes may need to be accelerated and lower levels of service Level of Uncertainty:medium tolerated until works can be completed Legislation Impact:medium. Assumption: Major legislation such as the Health Act, Building Act, Local Government Assumption: TheGovernment Enquiry into the Havelock North Drinking-Water incident Act, CDEM Act, etc and guidance through the National Policy Statements will continue does not require significant treatment beyond that currently budgeted. as anticipated Risk: The E.colicontamination of the water supply at Havelock North and the Risk: Significant changes in national standards or time deadlines for compliance with subsequent outbreak of enteric illness has been one of New Zealand’s most significant statutory requirements public health events of recent times. Level of Uncertainty: Medium The recommendations of the enquiry were published in December 2017 the Government’s response to the recommendations is not certain. It is possible the Impact: Investment projects may need to be accelerated or re-designed and funding Government will make significant and wide ranging changes to the quality and programme adjusted accordingly. governance of public drinking water supplies to reassure the public. These recommendations may result in requirements to upgrade the Blenheim treatment Labour & Materials Market plants to introduce chlorine in the water supply and may require some modification to the other, recently completed treatment plants. The capital costs are likely to be relatively low but will impose an ongoing operational cost. The planned upgrades of 2018-2028 Long Term Plan Page 216