Rural Water Supply

Community Consultation 17 January 2012

Overview

Background Overview of rural schemes Upgrade/renewal works –last three years Upgrade/renewal works – next 20 Years Options for change

Background - CSC Water Supply Network

•Largest in NSW •Supports human needs •Supports economy •All drinking water pumped from bores •Entered renewal stage •Low number of customers – especially the villages •CSC is a Local Water Utility - regulated •CSC consistently supplies safe drinking water to residents

Background – Water Supply Cost

Urban & Rural:

Actual 2008/09

Actual 2009/10

Actual 2010/11

Estimate 2011/12

Operation Expense 839,383 947,526 944,714 982,900

Capital Expense 533,141 185,016 163,584 605,000

TOTAL 1,372,524 1,132,542 1,108,298 1,587,900

Background - Operating costs

New electricity tenders contain increases to approx 7% - not 18%

Overview – Rural schemes

SCHEME AVERAGE

USE AVERAGE BILL CUSTOMERS CONSTRUCTED Goolgowi/Bunda/Goorawin/Budawong ( 60 customers) 2010/11(kL) 2010/11 ($) 1977 > Goolgowi Rural 20mm 658 $1,704.93 29 Goolgowi Rural 25mm 6705 $8,535.50 1 Goolgowi/Bunda/Goorawin/Budawong 20mm 1931 $3,102.89 24 1978/1995 Goolgowi/Bunda/Goorawin/Budawong 25mm 2438 $3,849.62 6 Yoollaroi ( 32 customers) 1770 $2,924.85 32 1976 Melbergen (26 customers) 1778 $3,277.33 26 1985

Black Stump ( bulk supply customer) 14906 $7,453.00 1 As individuals 1863 $931.62 8

Rankins Springs (79 excluding village) Pensioners 20mm 899 $2,095.62 7 Farms 1539 $3,095.85 67 Stage 1 : 80mm 72933 $67,559.70 1 1980 Stage 2 & 3 : 20mm 5277 $8,083.95 1 1981 Stage 2 & 3 : 25mm 1998 $4,097.30 2 1981

TOTAL 198

Overview – Assets by scheme

Rural Water Supply GOOLGOWI/YOOLAROI MELBERGEN RANKINS SPRINGS

Bores/Water Source 1 channel and 2 open dam 2 bores 1 bore

Ancilliary 2 Generators/Telemetry Telemetry Telemetry

Water Mains 112Km 93Km 168Km

Water Pumping Stations 6 3 6

Water Reservoirs 11 16 34

Water Treatment Works - - 1

Approximate Replacement Value $11,131,854 $19,329,639 $18,809,292

Total $49,270,785

Notes: 1. 2007 Valuation figures used: re-valuation in progress. 2. Extensive radio & internet comms network services urban & rural schemes.

Overview – Operational issues

ISSUE GOOLGOWI/YOOLAROI MELBERGEN RANKINS SPRINGS

Pressure Management Strategy Yes – local increase Yes - reduction Yes - reduction

Early mains replacements needed in next 3 years Yes – 3 kms Yes – 5 kms Yes – 9kms

Leak sealing of storages over time – some potential replacements 11 16 34

Upgrade PS or additional Storage to improve supply security. Yes (Y2PS) No Yes (R5 storage)

Refurbish dams Yes No Yes

Telemetery upgrades pending Yes Yes Yes

Water quality issues No No Yes

Notes: Climatic conditions and topography can interfere with comms network. Repeater station upgrades under investigation.

Cost of operations Melbergen

Melbergen Water - Total Costs Last 3 years

Scheme Actual 2008/09

Actual 2009/10

Actual 2010/11

Estimate 2011/12

Operational Costs $99,867 $103,287 $122,709 $107,300 Capital Costs $14,802 $29,891 $12,785 $48,000

TOTAL $114,669 $133,178 $135,494 $155,300

Note: Ballyrogan “headworks” 70:30 joint venture CSC: GWCC who share the headworks cost and also purchase water from CSC.

Asset Renewals & Capital projects Melbergen

•Commissioned two replacement bores •Refurbished bore pump + upgraded bore site – new ‘soft start’ board, telemetry $25,000 •Undergrounded M1 power (PELICANS!) •New switchboard Mt Daylight PS (M2) $ •Upgraded telemetry at multiple sites

Cost of operations Rankins Springs

Rankins Springs Water - Total Costs Last 3 years

Scheme Actual 2008/09

Actual 2009/10

Actual 2010/11

Estimate 2011/12

Operational Costs $203,716 $235,218 $203,979 $260,250

Capital Costs $1,476 $37,589 $79,188 $176,000

TOTAL $205,192 $272,807 $283,167 $436,250

Note: includes costs of supplying the village

Asset Renewals & Capital projects Rankins Springs

•New switchboard at Myall Park (R1) PS •New VSD switchboard at Aztec Farm (R2) PS •Upgrade of battery/solar at Conaipara repeater •Upgraded radio telemetery at multiple sites •Groundwater investigation – test drilling •New bore and PS developed in village •Renew disinfection system – liquid-chlorine

Note: CSC successful in retaining $100,000 grant for groundwater/bore.

Cost of operations Goolgowi/Yoolaroi

Goolgowi Water – Total costs

Scheme Actual

2008/09 Actual

2009/10 Actual 2010/11

Estimate 2011/12

Operational Costs $310,545 $338,751 $353,362 $343,000

Capital Costs $58,840 $36,815 $37,677 $114,000

TOTAL $369,385 $375,566 $391,039 $457,000

Asset Renewals & Capital projects Goolgowi/Yoolaroi

•Palmyra PS major upgrade - $80,000 •Goolgowi Dam PS – floating off-takes - $13,000 •Upgrade Y5 PS to solar pumps •Install filtration at Goolgowi Dam •Upgrade telemetry at multiple sites

20 Year Forward Plan - First 5 years ITEM OF WORKS/ TOTAL 2011/

12 2012/

13 2013/

14 2014/

15 2015/

16 2016/

17

GOOLGOWI/YOOLAROI New Assets Rural Yoolaroi: Floating dam off-take: Palmyra 8 8

Sub Total 8 8 0 0 0 0 0

Asset Replacement Rural Yoolaroi: Back Hillston 3K: Mains replacement 50 150

Rural Yoolaroi: Y1/G2 refurb/Stabilise dam banks 50 50

Rural Yoolaroi: Mains replacements Woollarma 50 50 Rural Yoolaroi: Y2, Y3: Replace switchboard VFD 95 65 30

Rural Yoolaroi: Y3, Y4, Y5: Upgrade RTU Yoolaroi 9 6 3

Rural Yoolaroi: Pump replacements 16 4 4 4 4 4 4

Upgrade telemetery at Goolgowi Dam *

(included in Urban budget)* Sub Total 370 75 237 4 54 4 4

Total - Goolgowi 378 83 237 4 54 4 4

20 Year Forward Plan - First 5 years

RANKINS SPRINGS WATER Total 2011/ 12

2012/ 13

2013/ 14

2014/ 15

2015/ 16

2016 /17

New Assets R5: Extra storage 146 146 Develop new bore 90 90

Sub Total 236 90 0 0 0 146 0 Replacement assets Investigation: R1 leak 5 5 Reservoir bank replacement: R1 30 30 Floating off-take: R1 pond 2 25 25 Replace storage pipework R2 R3 R4 R5 R6 R7 32 8 8 8 8

Replace switchboard VFD (,R3, R1) 120 60 60 Hydrant replacements 7 3 4 Mains replacement (150mm/Class 6 - 6.6kms) 480 480

Mains replacement (200mm/Class 12 - 1 km) 100 100

Pump replacement: R1, R2, R3: provision 30 5 5 5 5 5 5

De-silt/refurb reservoirs 12 4 4 4 Replace valve boxes (precast) 12 4 4 4

Sub Total 853 562 179 81 17 5 9 Total Rankins Springs 1089 652 179 81 17 151 9

20 Year Forward Plan - First 5 years

Note: Over the 5 year period $59,000 for communications & telemetry works common to all schemes

MELBERGEN WATER 2011/ 12

2012/ 13

2013/ 14

2014/ 15

2015/ 16

2016 /17

Replacement asset Mains replacement (100mm - 3.8 kms) 245 245

Mains replacement(80mm - 2.5kms) 155 155

Pump replacement: M1 10 10

Pump replacements 12 2 2 2 2 2 2 Replace storage pipework ( M2 M3 M4 M7) 13 8 5 Desilt/refurb reservoirs (M2 M3 M4 M7) 16 8 8

Replace switchboard ( M4, M7) 60 30 30

Sub Total 511 48 440 7 12 2 2

Total Melbergen 511 48 440 7 12 2 2

20 Year Forward Plan – Major items Yrs 6 - 20 Goolgowi/Yoolaroi 2020/21 Bunda mains replacement $240,000 2022/23 Langtree pump replacement 15,000 2025/26 Palmyra mains replacement 125,000 2029/30 Mains replacementWoollarma 100,000 Rankins Springs 2017/18 Pump replacements 5,000 (annual provision) 2019/20 Renew disinfection system 3,000 2021/22 Upgrade telemetry 15,000

Melbergen 2019/20 Replace/refurb pump M1 10,000 2020/21 Upgrade telemetry 18,000 2025/26 Replace/refurb pump M1 10,000

Capital - Water Schemes 2010/11 –

2014/15 2015/16 – 2019/20

2021/22 -2024/25

20025/26 – 2029/310 Total

Hillston 508,000 69,000 125,000 205,000 907,000

Goolgowi 583,000 177,000 765,000 417,000 1,942,000

Carrathool 88,000 51,000 10,000 10,000 159,000

Rankins Springs 929,000 187,000 447,000 41,000 1,604,000

Melbergen 572,000 130,000 51,000 20,000 773,000

20 year Total: $5,385,000

Proposed to use long-term loans to fund these works

End

Community Consultation Urban Water Supply

17 January 2012

Options for change

Community Consultation Urban Water Supply

17 January 2012

Options for change

1. Do nothing – keep things as they are 2. Consolidate some or all rural schemes 3. Landowner acquisition of schemes

Options for change 1. Do nothing – keep things as they are

$0.00

$1,000.00

$2,000.00

$3,000.00

$4,000.00

$5,000.00

$6,000.00

$7,000.00

$8,000.00

$9,000.00

Average Bill

2011/12 Average Bill - Rural

Goolgowi Rural 20mm Goolgowi Rural 25mm Gool/Bun/Goor/Bud 20mm Gool/Bun/Goor/Bud 25mm Yoolaroi Melbergen Rankins Springs Pensioners Rankins Springs Farms Rankins Springs Stage 2 & 3 20mm Rankins Springs Stage 2 & 3 25mm

2011-2012 Average Bill

Option 1:Do nothing – no change

•Schemes continue to stand alone and meet their own charges based on scheme cost •Funds raised in one scheme must be spent in that scheme •Schemes with low customer numbers face large future cost of mains replacements •Long-term sustainability of some schemes may be assessed

Option 2. Consolidate schemes All separate schemes treated as one All customers receive the same benefit of water from

the tap All customer categories pay the same charges All customers share combined costs Monies raised can be directed to highest priority

works when required across the network Better ability to fund major capital works ( like mains

replacements) and better ability to repay loans from larger customer base

Simplifies administration Strong trend over last decade by water utilities and

councils to consolidate

3. Landowner Acquisition of Rural Schemes

CSC as a Local Water Utility – highly regulated with statutory compliance costs

CSC as a responsible employer – strong OHS commitment, award conditions, overheads

CSC as a government body – bound to follow open & robust procurement practices/tendering

A scheme owners’ co-operative or other entity might be able to operate & maintain assets at lower cost

Landowner Acquisition of Rural Schemes

Requires: > land owners’ agreement > strong, structured business plan by land owners > investigate asset transfer, title options, management arrangements, legal & business continuity issues > submission to NSW OW: need to be satisfied of long-term sustainability and provisions for asset management > needs approval of Minister

END

Comparison CSC – Griffth CC – Goldenfields Water

CSC GWCC GCC

Residential 20mm 1034 10500 9900

Pensioner 20mm

Non-residential 20mm 8 58 33

Rural 20mm 2.2 6 20 Rural 25mm Rural 50mm 0.02 0.033 0.7 Rural 80mm

Comparison CSC – Griffth CC – Goldenfields Water

CSC GWCC GCC Customers 1034 10500 9900

Length of Mains (Km) 480 1780 500

Staff (FTE) 8 58 33

Customers per Kilometre 2.2 6 20

Staff per Kilometre mains 0.02 0.033 0.7

Customers per staff 130 181 300