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Minutes – Cairns Water Committee 21/8/07 - #1547388

CAIRNS CITY COUNCIL

MINUTES

CAIRNS WATER COMMITTEE

21 AUGUST 2007

FOLLOWING WORKS & SERVICES COMMITTEE

PRESENT: Councillor P Freebody

Councillor P Gregory (Chairperson) Councillor F Lindsay Councillor J Pezzutti Councillor A Sheppard

APOLOGY: Councillor T James Councillor K Byrne

OFFICERS:

N Briggs Chief Executive Officer B Gardiner General Manager Cairns Water A Bird Manager Business Services A Ung Manager Operations S Elwell Manager Waste Services L McDonald Communications Education Officer J Turner A/Manager Infrastructure S Godkin Secretary

OBSERVERS: Councillor K Plath Councillor M Cochrane

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APOLOGY Council notes the apology of Cr Byrne and Cr James.

1. MIXED STREAM BIO-ENERGY PLANT..............................................1 A Bird : 1/58/13-11: #1440447 PEZZUTTI / LINDSAY

RECOMMENDATION: That Council: 1. Authorise Cairns Water to engage CRA International to undertake the

feasibility analysis into the proposed bio-energy plant;

2. Provide a report back to Council once the feasibility study has been completed;

3. Note that the recurrent budget will be amended at the first review to reflect the engagement.

carried

INTRODUCTION: Cairns Water has been investigating the concept of using the old Portsmith Landfill site as a renewable energy hub with the primary goal of electricity generation. The concept is to use available resources to generate electricity with the ‘feedstock’ being a mixture of :

Methane gas from the landfill Biosolids (sewage sludge) Urban green waste Timber waste Recycled water from the Southern Treatment Plant.

All the above are waste streams that Cairns City Council / Cairns Water has control over. This report provides the background to the proposal and recommends that Council proceed with a feasibility study into the bioenergy plant.

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BACKGROUND:

Portsmith Landfill (a conventional engineered landfill) is nearing the end of its useful life with closure plans nearing completion. Cairns City Council has operated Portsmith Landfill since 1984. Disposal of waste at the landfill proceeded with a variety of compaction methods and continued continually until 2005. In the final year of full disposal, 104,000 tonnes of municipal and other wastes were disposed of to the site. Cairns Water has been investigating the concept of beneficially re-using the Portsmith Landfill site to create a renewable energy hub with electricity generation the key deliverable. In order to achieve this goal, a feasibility analysis is required to be undertaken on the economics of power generation. This feasibility analysis is to be an economic analysis that looks at:

- Recovery of landfill gas; - Establishment of a green waste and urban wood receival and processing

facility; - Establishment of a biosolid (municipal sewerage) receival facility; and - Construction of a 5 megawatt (MW) bio-fuel power generation plant utilising

landfill gas, urban greenwaste and biosolids as feedstock. Other options may include:

- Use of available ground space for the disposal of Construction and Demolition

Waste (C&D); - Receival and Processing of other waste streams available to Council (tyres,

metals, electronic goods); and - Use of the residual heat (medium pressure process steam) as an energy source

for co-located industries. The idea is that landfill gas, the urban green waste stream, demolition timber waste and biosolids will be beneficially reused in the production of electricity. It is envisaged that due to the complexity of the analysis a number of experts shall be required covering financial, construction and electricity generation fields. It is also envisaged that the gas collection and distribution system shall be incorporated into the closure plan for Portsmith Landfill. Portsmith Landfill is targeted to be fully closed by 2010. The actual deliverables associated with the feasibility analysis will be: 1. Cairns Water is to be provided with financial models associated with the Base

Case and Power Generation Option, with all costs and benefits being made fully transparent;

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2. Cairns Water is to be provided with subsidy programs capable of aiding the funding the capital contribution (both State and Federal);

3. Should power generation be economically feasible (less cost than the Base Cost) the study is to reference subsidy programs and be robust enough to provide the submission to the Agency administering the program; and

4. An options analysis on an appropriate delivery mechanism to achieve the goal of power generation while minimising risk to the Council.

5. A final report addressing the Scope with recommendations as to achieve whatever option is economically viable is required.

COMMENT: Cairns Water has put a brief to the market with a view towards gathering the right panel to undertake the feasibility analysis. CRA International, a consulting firm specialising in economic / financial analysis in the electricity industry, has put forward a bid to undertake the works identified above. Gadens Solicitors and Energy Solutions were also provided the Brief – neither responded to the Brief. Cairns Water has not formally engaged CRA International at this stage as it has been seeking ‘partners’ to aid in funding the feasibility analysis. It is considered that CRA International is the best available firm to undertake the analysis. Officers have been talking at all levels of Government in a bid to find some grant money to fund the feasibility analysis. To date, while government agencies have expressed support, none have come forward with funding assistance to date. Federal Government Involvement The Council’s Previous CEO, (Mr David Farmer) met with three senior bureaucrats in Canberra in November 2006. These senior public servants were:

• Dr Gary Dolman, General Manager, Regional Partnerships, Department of Transport and Regional Services;

• Mr Howard Bamsey, Deputy Secretary, Department of Environment and Heritage and Head of the Australian Greenhouse Office; and

• Mr Rick Belt, Manager of Renewable Energy, Dept of Industry, Tourism & Resources.

All expressed that the project appeared worthwhile but could not offer any assistance.

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State Government Involvement Cairns Water has been lobbying the State Government intensively to provide support for this project. The following time line indicates how the State Government has responded to the project concept: Date Action

22 January 2007 Cairns Water approaches the Department of Mines and Energy providing the Terms of Reference and the CRA International response to the Terms. There was no response to the enquiry.

5 February 2007 Cairns Water accesses the State Development “Regional Business Development Scheme” grant application form.

16 February 2007 Cairns Water approaches State Development with a view towards progressing the project, providing the Terms of Reference and the CRA International response to the Terms.

State Development informs Cairns Water that it is not eligible for assistance as ‘the infrastructure would be owned by Council’

The response from State Development was:

Your eligibility as a LGA is not questioned but projects that focus on pre-feasibility studies or feasibilities studies for public infrastructure are deemed ineligible under the guidelines. The application would be received from Cairns City Council due to Cairns Water not being a separate entity. We are therefore of the opinion that the proposed Power Generation Facility would therefore be considered a publicly owned and operated facility.

19 February 2007 Cairns Water undertook research of its own accord and found the following examples of both local government ownership and feasibility study payments (funded by State Development):

• Bundaberg City Council - Convention Centre Feasibility Study

• Noosa Shire Council - Feasibility Study Redeveloping Cooroy Lower Mill Site

• Maroochy Shire Council - Feasibility Study for Proposed Arts Convention Centre

• Maroochy Shire Council - Planning for Development of Industrial Land – Sunshine Coast Airport

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26 February 2007 Cairns Water began the application process for RBDS funding of

the project.

14 March 2007 Cairns Water had its first formal interview to hand the application to the State Development Office.

On advice from State Development the application was not formally handed in as more information was sought, e.g. letters of support (provided by AusIndustry) and other information on the financial modelling already undertaken by Cairns Water.

Date Action

20 April 2007 The submission was formally handed to State Development.

10 May 2007 Information was provided to State Development (at their request) on:

a Dun and Bradstreet Analysis conducted on behalf of State Development; and

Work conducted in Lae – New Guinea (solid waste strategy)

23 May 2007 Information was provided to State Development (at their request) on:

Cairns Water’s internal pre-feasibility study (financial analysis of various options)

30 May 2007 Information was provided to Cairns Water indicating that it would be beneficial for the Minister (State Development) and the General Manager to meet at the Centre of Excellence opening in June.

14 June 2007 State Development sought further information from Cairns Water on ‘like’ technologies currently operating in the Country. These were provided.

17 July 2007 State Development informed Cairns Water that funding would not be provided on the basis that this was considered by the Department to be Public Infrastructure.

As can be seen from the time frame Cairns Water has sunk considerable time and effort into dealing with State Development for a period of five months with no beneficial result achieved.

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Private Equity Involvement SITA-CEC Environmental Solutions have offered to provide Cairns City Council with $30,000 towards the feasibility study, with a requirement that the company receives the report and all associated financial models. This is considered acceptable to Cairns Water. The funding pledge was made in February and remains current.

CONSIDERATIONS: Corporate and Operational Plans: Council’s Corporate Plan references sustainability as:

Sustainability means meeting the City’s present needs without compromising the ability of future generations of Cairns residents to meet their own needs. To achieve this requires:

• minimising our use or waste of non-renewable resources • sustainable use of finite renewable resources • ensuring that ecosystems can handle the effects of development,

and • protecting natural processes and climate systems.

It is considered that power generation from the use of renewable waste material such as sewage sludge and green waste meets sustainability requirements associated with the Corporate Plan. Cairns Water’s Level 2 System View has a vision statement:

By 2010 Cairns Water will be recognised as a customer focused provider of quality services to the Cairns community that 1) values innovation and continuous improvement in the delivery of our services, and 2) fosters input from staff and the community into our decision-making processes.

It is considered that the power plant utilising sewage sludge, green waste, methane and re-use water meets sustainability and innovation characteristics associated with the Corporate and Operational planning framework. Bio-Energy Power It is envisaged that should the project proceed, construction of a 5 to 10 mega-watt facility is possible. It is probable that 5,000 to 10,000 homes (depending on the size) can be powered by this plant with a possible greenhouse gas saving of between 27,000 and 54,000 tonnes per annum. It is also considered that the project is an environmentally friendly means of disposing of methane gas which in-turn may reduce Council’s impact on the Greenhouse effect. The project would actively seek Renewable Energy Credits and look at the feasibility of attracting NSW Greenhouse Gas Abatement Credits.

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Financial and Risk: The project has considerable financial and technical risk associated with it, hence the requirement for a feasibility analysis to fully understand financial, operational and technical risks associated with the technology. It is also envisaged that there is risk associated with the actual delivery mechanism of the project. This is also to be reviewed in the feasibility analysis. At this stage the risks are unquantified and unknown – however, there is also a great deal of opportunity in the project. The opportunity relates to providing embedded power generation for Cairns City Council while essentially consuming waste resources generated / received by Cairns City Council. The cost of the consultancy is estimated at $145,000 of which SITA-CEC Environmental Solutions will pay $30,000. The Cairns City Council funded component is $115,000. Presently, there is $50,000 budgeted for the proposal, consisting of $120,00 in Accounting Services and $70,000 in the Grant Revenue natural account. Hence an adjustment of $65,000 will be required should the study proceed. Recurrent Operating Costs Cairns Water currently carries the burden of two significant operating costs, namely sewage sludge disposal ($1.6M) and chipping of green waste ($0.9M). These costs will be significantly reduced if the bio-energy plant comes to fruition. For the sludge, the transportation costs will only be from the sewage treatment plants to Redden St, while the vegetation will only have minor transportation costs with the bulk of the chipping being conducted on the Redden St site. It is envisaged the chipping and disposal costs will reduce by $0.3M and the sludge disposal by $1.0M for a combined saving of $1.3M. The operating costs of the bio-energy plant are envisaged to be $1.6M. With the revenue from the sale of the electricity, the savings from the sludge disposal and vegetation removal, it is envisaged that the bio-energy plant will provide a positive cashflow to the Council. The feasibility study will further draw out these costs and stress test the underlying assumptions.

CONSULTATION: At this stage the project / idea been widely floated with both State and Federal Government agencies being contacted, however, indications are that the project does not fit with their guidelines for providing seed funding. It appears that funds are primarily related to capital delivery aspects and not feasibility studies.

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OPTIONS: Council has the options of: Option A

Co-Funding the feasibility study with SITA-CEC Environmental Solutions; or

Option B

With the potential commercial opportunities, it is proposed to also approach commercial entities with interests in other potential fuel sources (eg compost, green wastes other than urban waste) to seek additional partners in the feasibility study. It is not known if this would be acceptable to SITA-CEC and may jeopardise the funding already attained.

Option C

Dissolve the project and continue with business as usual.

CONCLUSION: Council has an opportunity to undertake an innovative project that has the capability of delivering embedded power generation to the networked grid. The innovation in the project is the use of up to four (4) waste streams, namely methane gas from landfill, biosolids from sewage treatment, green waste vegetation from Council transfer stations and recycled use water (generation of steam) from the Southern Wastewater Treatment Plant. Combining these renewable waste streams to develop power provides Council with flexibility in the handling of the by-products. At this stage it is recommended that Council undertake a feasibility analysis so that it is fully aware of risk (and opportunity) in the project and also to ascertain whether the project provides Council with a positive net present value over a twenty (20) year horizon.

2 MAJOR PROJECTS STATUS REPORT............................................15 Bruce Gardiner : 24/19/32-10: #1113282 v21 SHEPPARD / LINDSAY

RECOMMENDATION:

It is recommended that the report be noted. carried

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INTRODUCTION: The following update is provided on current major projects being undertaken by Cairns Water. As requested by Councillors, updated information is provided in a lighter font colour and information no longer relevant has a line through it. Project 1: CLEANER SEAS INITIATIVE Project Manager: Stephen Devlin Project Steering Group: Stephen Devlin, Anthony Bird, Bruce Gardiner Alliance Partners: SKM Pty Ltd, CEC Construction Ltd, GHD Pty Ltd,

United Group Infrastructure Pty Ltd Scope of Works: This major project will involve substantial upgrades to

four Wastewater Treatment Plants over the period 2006 to 2010 with expenditure in excess of $120M. Construction on the first, the Marlin Coast plant, is currently scheduled to begin construction in fourth quarter of 2007.

Key Achievements:

- Presentation to tenderers for Contract No. CW 75236/2007 “Supply of Submerged Membrane Filtration System at Southern WWTP” held in Cairns on 11th July.

- Meeting with ITT Flygt regarding Contract No. CW 75233/2006 “Supply of Diffused Aeration Equipment” held on 12th July.

- Marlin Coast WWTP TOC Independent Estimator meeting held in Cairns from 24-26 July.

- ALT meeting held in Cairns on 27th July. Value Engineering meeting held in Cairns on 30th July - Contract No. CW 75236/2007 “Supply of Submerged Membrane Filtration

System at Southern WWTP” closed on 7th August at 2pm. - KRA/KPI workshop held in Cairns on 20th June. - Risk and Opportunities workshop held in Cairns on 27th June. - ALT meeting held in Cairns on 29th June. - Meeting with RDP regarding Contract No. CW 75235/2006 “Supply of Lime Sludge

Stabilisation Equipment” held in Brisbane on 5th July.

Issues

- Presentation to tenderers for Contract No. CW 75236/2007 “Supply of Submerged Membrane Filtration System at Southern WWTP” to be held in Cairns on 11th July.

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- Meeting with ITT Flygt regarding Contract No. CW 75233/2006 “Supply of Diffused Aeration Equipment” to be held on 12th July.

- Aerobic Digester trial bench tests at Cairns and Hunter Water highlighted a

potential area of concern in the volume of aerobic digestion required for upgrade of the Southern WWTP. Consequently, alternative technology options for meeting the sludge stabilisation requirements of the PTR (Principals Technical Requirement) are being investigated. A Challenge and Innovation meeting in Brisbane on June 4th indicated that Anaerobic Digestion or Aerobic Digestion (as per Concept Design) of the sludge were the preferred options, and that a lifecycle cost comparison is required. This is currently being undertaken by the Alliance.

- Preparation of the Turn Out Costs is ongoing, and is expected to be completed

by early October late July.

- All alliance partners now working towards staff recruitment, as numerous positions within the Alliance are yet to be filled.

Future Milestones

- ALT meeting to be held in Cairns on 27th July.

- Closing date for Contract No. CW 75236/2007 “Supply of Submerged Membrane Filtration System at Southern WWTP” is 7th August at 2pm.

- ALT meeting in Cairns on 31st August.

- Finalisation of Marlin Coast portion of TOC by 31st August. - Full TOC expected for completion in late September /early October.

Financial Data On 4th April 2007, the EPCM Contract between CCC and SKM/CH2MHill was suspended. On 21st May 2007, the IPAA agreement was signed, with an initial expenditure limit of $2,599,354.00 which is for a duration period of 115 days. Alliance Partner Payments to Date (ex. GST) CEC Construction Pty Ltd $93,503.36 GHD Pty Ltd $153,185.32 SKM Pty Ltd $368,394.72 United Group Infrastructure Pty Ltd $339,132.40

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Project 2: BARRON RIVER WATER SUPPLY SCHEME Project Manager: Jon Turner Project Steering Group: Bruce Gardiner, Steve Devlin, Jon Turner Consultant: GHD – Process Selection of WTP GHD – Detailed design of intake and pump station Consultant currently being selected to prepare TOR for

the following tasks: - Pipelines - detailed design and documentation - Statutory Approvals - Geotechnical investigation. Scope of Works: There are a significant number of stages to this scheme

with the program for implementation intertwined with the Mulgrave River Aquifer Scheme and Demand Management Program.

The Stages include: - Raw Water Quality Monitoring Program - Intake & Pump Station Concept Design - Barron River ROP submission for release of water

and Planning Report - Kamerunga Water Treatment Plant Process

Selection - Design Phase of the Scheme - Construction Phase (yet to be approved by Council)

Key Achievements The major achievements to date include: - Statutory approvals granted for construction of the intake and pump station on the

Barron River. - Water Quality Monitoring of the Barron River at Lake Placid is complete. - Initial response from NRW in regards to the offer price for the 4000ML

unsupplemented allocation from the Barron River ROP not favourable. - Geotechnical investigation of the intake, pump station and pipelines will be

completed by end of July 2007. - Award of Consultancy for Kamerunga Water Treatment Plant Process Selection to

GHD Pty Ltd and Hunter Water.

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Issues Cairns Water received a formal response from NRW in late June 2006 in relation to the Barron River ROP submission. The response outlines a comprehensive request for further information in support of the submission. It includes: 1. Confirmation that environmental flow requirements have been considered in the

operation of the extraction; 2. Evidence of effectiveness of water conservation initiatives; 3. Current update on Cultural Values; 4. Request to undertake further hydrological modelling based on the actual

entitlement of 4000ML/a in preference to the 31500ML/a anticipated maximum; 5. Further information of infrastructure requirements; 6. Provide offer price for 4000ML/a entitlement; 7. Scope of information to be provided in response to NRW has been confirmed with

NRW officers. A meeting with NRW was undertaken in mid April 2007 on the matter of the offer price. It is evident that NRW remains firm on its reserve price for unsupplemented water and will be looking to Cairns City as the first to enter unsupplemented water market in the lower Barron Basin and set the market price. Cairns Water have been reviewing options for deferred payment over a number of years based on Cairns Water progressively increasing its use of 4000ML/a over a number of years. Future Milestones - Following Cairns Waters review of the outcomes of the Mulgrave River Aquifer

Feasibility Study, a decision on whether to make a formal price offer to NRW will be made. It is likely the offer will take the form of a deferred payment system based on the progressive increase in use of the Barron Water over time.

- Public tender for pipeline design and documentation, statutory approvals on hold pending confirmation of offer price for 4000 ML/a.

Financial Data Barron River Water Supply

Project # DescriptionOriginal Budget 07/08

Expense at 27/7/07

Commitals at 27/7/07

Total Costs at 27/7/07 Variance

PCW50110BRN-KAM WTR TRTMNT PLANT 620,000 2,760 - 2,760 617,240

PCW50510BRN - RAW &TREATED WTR MAIN 750,000 1,799 4,000 5,799 744,201

PCW50710BRN- WTR SUP INTKE WORK & PS 200,000 1,597 - 1,597 198,403

PCW50810BRN-KAM CLR WTR RESERVOIR 120,000 453 - 453 119,547 Total 1,690,000 6,608 4,000 10,608 1,679,392

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Project 3: MULGRAVE RIVER AQUIFER SCHEME Project Manager: Jon Turner Project Steering Group: Bruce Gardiner, Steve Devlin, Jon Turner Consultant: GHD Pty Ltd Scope of Works: Based on the outcomes of the Least Cost Planning

Study and recommendations adopted by Council, the investigation phase of the Mulgrave River Aquifer Scheme is currently underway. This work involves the following major tasks:

- Engineering Feasibility Study of the Mulgrave River

Aquifer - Environmental Feasibility Study of the Mulgrave

River Aquifer. Key Achievements Environment, Public Environment Report (PER) A draft response to the Commonwealth in the format and in the accordance with the guidelines provided by the Commonwealth has been completed and a draft document has been lodged with Cairns Water for internal review prior to finalization and issue.

The key findings of the Public Environment Report is that the Matters of National Environmental Significance as identified by the Commonwealth will not be impacted by the abstraction from the Mulgrave River aquifer.

These conclusions are based on:

- the absence of the species in the aquifer area. The majority of the matters identified have no records from the study area, were not identified in field surveys for the species, and have no suitable habitat presented;

- no native vegetation or habitats will be cleared for the project;

- the numerical groundwater modelling has indicated that there will be no quantifiable impacts on increased salinisation or in exposure of acid sulfate soils, both issues which may have impacted on the World Heritage Area within Mutchero Inlet.

A first stage benchmarking processing in assessing the environmental flows of the Mulgrave River has been undertaken. This has identified that the proposed levels of abstraction from the aquifer will not have an impact on the environmental flows of the Mulgrave River for the average annual seasonal variation.

The information from the above study was presented to a Statutory Authorities workshop in March 2007.

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Aquifer Feasibility Study Five draft technical reports comprising the body of the feasibility study have been submitted to CW and are currently under review. These technical reports have undergone a reiterative review process in which specific technical issues related to design and operation of the associated infrastructure facilities have been addressed. Cairns Water have continued to provide feedback from Council perspective on these technical issues. All the technical reports have been combined into the single document for final review by Cairns Water.

The key outcomes of the study are as follows:

A reliable and environmentally sustainable Stage 1 aquifer water supply of 15 ML/d is feasible and is able to developed at capital cost of $12m. This proposal is also economically sound as it delays the need for the development of a major new water supply source (eg the Barron River Water Supply Scheme at a cost of at least $50m) until 2015.

An environmentally sustainable aquifer water supply of 40ML/d is also feasible. However, the level of abstraction may need to be reduced below 40ML/d during extreme dry periods due to potential impacts on the environmental flows in the Mulgrave River. The technical assessments undertaken as part of this study have revealed a much higher interaction between the aquifer and the surface water systems and a consequent greater impact on environmental flows in the Mulgrave River than had been assumed in previous studies by NRW and others. More intensive environmental flow monitoring over a period of several years is therefore required to resolve the reliability of a 40ML/d abstraction.

A presentation on the final outcomes of the project is to be made by GHD to Cairns Water on 9th August. Future Milestones The Final Report is expected from the consultant by the end of August July 2007. Financial Data Included in the Barron River Water Supply Scheme report. Mulgrave River Aquifer Scheme


Expense at 27/7/07



PCW51310MLGRVE RIVER ACQ PLANNING - 2,786 - 2,786 (2,786)Total - 2,786 - 2,786 (2,786)

Project 4: WATER DEMAND MANAGEMENT PROGRAM

Project Manager: Eric Zesers Project Steering Group: Alex Ung, Jon Turner; Lia McDonald, Eric Zesers.

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Scope of Works: Based on the outcomes of the Least Cost Planning Study and recommendations adopted by Council, Cairns Water are enhancing the existing demand management program which commenced in early 2004. A Demand Management Strategy has been adopted by Council, incorporating the following initiatives-

- Community education - Permanent water conservation measures - Water Conservation for Commercial Customers - Cairns Water and Cairns City Council water use

audits - A comprehensive leakage reduction effort including

the establishment of Pressure Management and District Metering areas.

- Ongoing leak detection - Reduction of unbilled and illegal connections - Review of raw water supply and Treatment Plant

operations - Recycled water opportunities.

The largest undertaking for Cairns Water is the establishment of pressure management areas and district metering areas. This involves major changes to the operation of our water reticulation system and improving our ability to track non-revenue water. The success and timeliness of the demand management program has implications on when Cairns City Council’s next water supply source is required. Key Achievements Drought Management Plan prepared and adopted by Council. Demand Management Strategy prepared, and adopted by Council. Funding of $1,312,135 has been approved, by the Department of Local Government, Planning and Sport, to assist with the implementation of the Demand Management Strategy. Funding will be provided for the Public Education and Communication Program, Communications and Education Officer and the District Metering program. Community attitudes and awareness survey on water conservation completed. Approximately 60% of the district metering zones are in place and operating. Leak detection works in the CBD completed in July 2006. Implementation of the use of treated effluent for process use at Northern and Marlin Wastewater Treatment Plants is completed. This will save approximately 700ML of potable water per annum. Scoping study on the potential for recycled water use at Flecker Botanic Gardens completed. Council approved further investigation into the use of recycled water at the Botanic Gardens and the Cairns Port Authority.

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Consultants appointed to prepare a Strategic Plan on Recycled Water Use for Cairns. The Plan is focussing on a strategic approach to utilising high quality effluent from the upgraded Wastewater Treatment Plant. Water Conservation Policy for Cairns City Council operations adopted by Council. Council approved entering into an MOU with the Queensland EPA to implement the ecoBiz program in Cairns. “Our Cairns Water” campaign was launched on April 23, 2007 with a public launch on April 29th at Fogarty Park. New website online in May 2007 - ourcairnswater.com.au EcoBiz launched with a workshop for businesses on May 10th. Application for exemption from Water Saving Targets was submitted to DLGPSR in May 2007. The Minster for Local Government Planning and Sport notified Council on, June 21 2007 that a conditional exemption of one year had been granted. Consideration of further exemptions will be dependant on reported progress against the Demand Management Strategy. Strategic Plan for Recycled Water Use completed July 2007. Report to be provided to Council in September. Future Milestones - Complete district metering by end of 2007 - Complete Strategic Plan for Recycled Water Use – July 2007. - Investigation into un-metered water services – July 2008 - Complete System Leakage Management Plan – August 2007 - Second “Our Cains Water” television commercial to be aired starting in October

2007. Financial Data Water Demand and Pressure Management


Expense at 27/7/07



PCW7053 DISTRICT METERING - 39,326 68,518 107,843 (107,843)PCW7050 Unmetered firelines inv & inst - 2,130 - 2,130 (2,130)

PMW7058Demand management (operational) 357,572 2,335 226,497 228,832 128,740 Total 357,572 43,791 295,015 338,805 18,767

Project 5: CAMPBELL STREET PUMP STATION,

GORDONVALE

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Project Manager: Jon Turner Consultant: John Wilson & Partners (JWP) Scope of Works: Detailed design and documentation of the new

Campbell St Pump Station, Gordonvale to replace the existing aging pump station. The existing pump station was constructed in the 1940s and has been the subject of an investigation into the benefits of a major rehabilitation of the pump station versus construction of a new pump station. The recommended option was to design and construct a new pump station adjacent to the existing and abandon the existing pump station.

Key Achievements Tenders for the construction of the pump station and rising main closed on 26 June 2007. and is currently being assessed by Cairns Water officers. Issues Cairns Water have recently attended meetings with Mulgrave Central Mill on the matter of securing the conditions for approval of construction of the rising main within the tramway corridor. are currently securing final approval from Mulgrave Central Mill to construct the rising main within the tramway corridor owned by theMill. Based on new conditions raised by Mulgrave Central Mill, Cairns Water will be deferring the construction of the rising main to a later time pending an agreed outcome with Mulgrave Central Mill. It will therefore be necessary to retender the pump station component only to allow construction to proceed on the pump station. Future Milestones Award of pump station contract in September July 2007. Secure agreement with Mulgrave Central Mill for constructing the rising main within the Tramway corridor in august 2007 to allow tendering for the pipeline in August 2007. Financial Data Campbell Street Pump Station


Expense at 27/7/07



PCS6442 CAMPBELL ST PS - 53,233 12,549 65,782 (65,782)PCS7402 CAMPBELL ST RISING MAIN - 1,023 - 1,023 (1,023)

Total - 54,256 12,549 66,805 (66,805) Project 7: BRAMSTON BEACH SEWERAGE & WATER

SUPPLY SCHEME

Project Manager: Jon Turner

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Consultant: GHD Pty Ltd Scope of Works: Undertake planning report for the provision of sewerage

system for Bramston Beach Community and upgrade of the water supply system. This work will lead into the implementation phase of a sewerage collection, treatment and disposal scheme and water supply upgrade for Bramston Beach.

Key Achievements Meeting No. 3 undertaken on 19 September 2006. The full evaluation of options was presented including the preferred option. Council resolved to move forward with implementing a sewerage scheme at its Ordinary Meeting October 2006. Planning report for the Bramston Beach Sewerage Scheme and Water Supply Upgrade has been endorsed by Council. Issues The Terms of Reference for the preparation of the design and acquisition of permits and approvals is currently being developed. Future Milestones Design and statutory permit/approval acquisition is expected to take up to 12 months to complete, ie. August 2007. Approvals associated with GBRMPA or DEH are likely to span 18 months. Delivery of the Bramston Beach scheme is currently being considered as part of the Cleaner Seas Alliance project. The approved Planning Report was submitted in June 2007 to Department of Natural Resources and Water and Department of Local Government and Sports & Recreation to secure WASP funding for the scheme. Financial Data Bramston Beach


Expense at 27/7/07



PCS52000BRAMSTON BCH SWG PLANNING 4,142,857 - - - 4,142,857

PCW52000BRMST BCH WATER SPPLY UPG 950,960 - - - 950,960 Total 5,093,817 - - - 5,093,817

Project 8: MRF (MATERIALS RECOVERY FACILITY)

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Project Manager: Steve Elwell Consultant: Waste Recycling Equipment Services Scope of Works: This major project will involve an upgrade to the

Material Recycling Facility to enable the facility to receive paper and cardboard for sorting and baling for onsale to markets.

Key Achievements:

- Construction of footings commenced - Construction of paper and cardboard sorting equipment commenced - Fortnightly recycling of paper and cardboard has commenced. - Slab Floor poured - Roof supports have been installed

Issues: The ability to operate during construction. Future Milestones:

- Delivery of paper and cardboard sorting equipment - Completion of shed – Installation of paper and cardboard sorting equipment 27

August 2007 - Commissioning of equipment 3-6 September 2007.

Financial Data MRF


Expense at 27/7/07



PCE08110 MRF - GLASS CRUSHER 260,200 - - - 260,200 PCE08120 MRF - PAPER SORTER 900,000 - - - 900,000 PCE8801 MRF DESIGN & CONSTRUCTION 560,000 6,258 892,752 899,010 (339,010)

Total 1,720,200 6,258 892,752 899,010 821,190

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3. WATER - SITUATION REPORT .......................................................27 Bruce Gardiner:JEA : 24/1/5-23: #1147692 v18 LINDSAY / SHEPPARD

RECOMMENDATION: It is recommended that this report be noted. carried Please note that water quality results are included in the monthly report, Operations - Water Services Section.

COPPERLODE FALLS DAM Copperlode Falls Dam was approximately 99.80% full to the end of July 2007. The following graph shows the spillway level from 2005 to date.

Cairns WaterCopperlode Dam Spillway - 3 Year Span

-4000

-3000

-2000

-1000

0

1000

2000

3000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecTop of Spillway

Level in MM

Year2005Year2006Year2007

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The Southern Oscillation Index, updated on 3 August 2007 from the Bureau of Meteorology, was negative.

BEHANA CREEK Behana Creek at the end of July 2007 had a creek flow at the intake weir of greater than 85 ML.

CONSUMPTION AND RAINFALL: Rainfall recorded at the Freshwater Creek Plant for July 2007 was 37mm. The graph below shows water production versus rainfall from January 2005 to date.

Cairns WaterAnnual Comparative - Water Production V's Rainfall (3 Year Span)

0.00

500.00

1000.00

1500.00

2000.00

2500.00

3000.00

3500.00

Janu

ary

Febr

uary

Mar

ch

Apr

il

May

June

July

Aug

ust

Sep

tem

ber

Oct

ober

Nov

embe

r

Dec

embe

r

Months

Leve

l in

MM

& P

rodu

ctio

n M

L

2005 Rainfall2006 Rainfall2007 Rainfall2005 Production2006 Production2007 Production

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The following graph shows the volume of water extracted from Behana Creek and supplied from Freshwater Treatment Plant.

Cairns WaterAnnual Comparative - Location - Water Production V's Rainfall

0.00

500.00

1000.00

1500.00

2000.00

2500.00

3000.00

Janu

ary

Februa

ry

March

April

MayJu

ne July

Augus

t

Septem

ber

Octobe

r

Novem

ber

Decem

ber

Months

Leve

l in

MM

& P

rodu

ctio

n in

ML

2007 Rainfall2007 Total Production2007 FWTP Production2007 Behana Production

NON REVENUE WATER These figures will be reported quarterly – next report due October 2007.

4. ENVIRONMENTAL MANAGEMENT REPORT – JULY 2007 .............30 Ian Clayton : 18/25/2-04 #1533576 v 1 FREEBODY / SHEPPARD

RECOMMENDATION: It is recommended that this report be noted. carried

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INTRODUCTION: Under the adopted Integrated Environmental Management System, a monthly Environmental Management report is to be prepared for consideration by Council.

BACKGROUND: During the month of July one (1) environmental incident and zero (0) wet weather overflows were recorded and reported. During the 09/07/2007, a sewer blockage occurred in Henley Street Earlville. Prior to clearing the blockage, a small amount of effluent (estimated at 200 litres) reached the curb and channel fronting the premises located at 5 Henley Street. The effluent was quickly contained and removed by vacuum tanker. The area contacted by effluent was disinfected.

COMMENT: Cairns Water has an obligation to the community to operate an efficient and effective sewerage system. Within the operational sphere, accidents and equipment malfunction will occur. The effectiveness of operational policy can be judged by the ability of the individuals to respond to such incidents. In the above case, the response was efficient and effective, with no measured or perceived environmental harm.

CONSIDERATIONS: Corporate and Operational Plans: A related Key Goal from the Corporate Plan includes:

6. Health Safety and Community Development

A specific outcome identified is:

6.5 Healthier and safer Place for residents and Visitors Cairns Water’s Operational Plan for Wastewater Services has as its aim:

To minimise the operational costs of sewerage service delivery while maintaining agreed service standards.

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Statutory: Compliance with Environmental Protection Agency (EPA) licence no. 5010000159 and the Environment Protection Act 1994.

Financial and Risk: Failure to respond quickly and effectively to incidents may result in substantial penalties.

Sustainability: N/A

CONSULTATION: EPA were advised of all incidents.

CONCLUSION: Cairns Water will continue to operate the sewerage system in an efficient and effective manner.

5. CAIRNS WATER MONTHLY REPORT FOR AUGUST.......................32 Bruce Gardiner : 1/3/38-01: #1532195 v1 LINDSAY / PEZZUTTI

RECOMMENDATION: It is recommended that the monthly report from Cairns Water for the month of July 2007 be received and noted. carried

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6. OUTSTANDING ISSUES – CAIRNS WATER COMMITTEE .............112 B Gardiner : 1/58/13-10: #1351520v9 LINDSAY / SHEPPARD

RECOMMENDATION: That this report be noted. carried

INTRODUCTION / COMMENT: Attached is a listing of the Outstanding Issues relating to items of the Cairns Water Committee with comments on the status of each item.

ATTACHMENTS: List of Outstanding Issues – Cairns Water Committee.

OUTSTANDING ISSUES

CAIRNS WATER COMMITTEE

STATUS OF ACTIONS AS AT WEDNESDAY, 15 AUGUST 2007

Meeting Date

Item Issue Action Officer

Status

21 Nov 06

CW - Cl 1 Greywater Reuse “4. Identify, for endorsement by Council,

blanket areas declared unsuitable for greywater reuse applications based on environmental considerations;

5. Develop a local law requiring annual

registration of greywater diversion or treatment systems and include a registration fee to cover the cost of annual inspections of greywater diversion or treatment systems.”

Manager Business Services

Soil Map is in process of being developed.

Subsequent to Item 4. above.

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GENERAL BUSINESS

1. RESOLVED THAT THE MAYOR AND CHAIRMAN CAIRNS WATER COMMITTEE MAKE DIRECT REPRESENTATION TO THE APPROPRIATE MINISTERS AND ENDEAVOUR TO SEE THEM WHEN THEY ARE ATTENDING THE LGA CONFERENCE REGARDING FUNDING FOR THE FEASIBILITY ANALYSIS INTO THE PROPOSED BIO-ENERGY PLANT.

PEZZUTTI / FREEBODY carried

CLOSED SESSION FREEBODY / LINDSAY COUNCIL RESOLVE INTO CLOSED SESSION TO DISCUSS THE FOLLOWING MATTERS AS LISTED IN THE AGENDA:

1. STAFF MATTER - CHANGE IN CAIRNS WATER STRUCTURE ..........1 B Gardiner BG: 1/58/13-11: #1527951

2. CONTRACTUAL MATTER - CLEANER SEAS – ESTABLISHMENT AUDIT RESULTS...............................................................................7

B Gardiner : 24/23/1-01: #1540081 carried OUT OF CLOSED SESSION COUNCIL RESOLVE TO MOVE OUT OF CLOSED SESSION SHEPPARD / FREEBODY carried RESOLUTIONS ARISING FROM MATTERS DISCUSSED IN CLOSED SESSION.

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1. STAFF MATTER - CHANGE IN CAIRNS WATER STRUCTURE ..........1 B Gardiner BG: 1/58/13-11: #1527951 FREEBODY / SHEPPARD

RECOMMENDATION: That the attached revised Cairns Water structure be adopted. carried

2. CONTRACTUAL MATTER - CLEANER SEAS – ESTABLISHMENT AUDIT RESULTS...............................................................................7

B Gardiner : 24/23/1-01: #1540081 SHEPPARD / LINDSAY

RECOMMENDATION: That Council: 1. Note the associated financial gains from the competitive tension involved in

undertaking the expanded establishment audit on two consortia;

2. Approve the variation to the original consultancy for the Cleaner Seas Establishment Audit;

3. Appoint Pacifica Chartered Accountants as the preferred supplier at the tendered schedule of rates for the remainder of the Cleaner Seas Project estimated at an additional 200 hours; and

4. Require a report to be provided for approval in the event that the estimated additional hours significantly exceed the estimated 200 hours.

carried THE MEETING CLOSED AT 4:28 PM

live-#1547388-v1-minutes - cairns water committee 21 8 07 · biosolids (sewage sludge) urban green...

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