2004 COLIBAN WATER ANNUAL REPORT VISION To be a leader in sustainable water resource management adding to the prosperity of our region.

MISSION Our purpose is to provide high quality water and wastewater services to the people of North Central Victoria.

VALUES • We value our customers and our communities. • We care for the safety, well being and development of our staff. • We value achievement and the pursuit of excellence. • We encourage innovation. • We take a commercial approach to our business and to service delivery. • We are ethical, open, honest and fair. • We take responsibility for our actions. • We care for the environment. SCOPE OF THE REPORT TABLE OF CONTENTS This report covers all of Coliban Water’s operations from 1 July 2003 to 30 June 2004. Message from the Chairman and Chief Executive 2 Our previous annual report was tabled in Profile: Coliban Water 4 Parliament on 30 October 2003. Water Security for Our Future 7 This report meets the requirements of the Economic Performance 8 Financial Management Act 1994 and further Our Functions 13 directions of the Minister for Water. These directions provide guidance in the application Security of Supply 13 of Triple Bottom Line Reporting around which Water Quality 19 our Annual Report is structured. References Wastewater 23 used include Triple Bottom Line Reporting Wastewater Treatment 24 Guidelines of the Victorian Water Industry Reclaimed Water and Biosolids 26 Association, and the Global Reporting Environmental Performance 28 Initiative’s (GRI) 2002 Sustainability Reporting Guidelines and Pilot Water Protocol (2003) Social Sustainability 32 Customer Feedback 32 We recognise that Triple Bottom Line Reporting is an incremental process and we Stakeholder Engagement 33 are committed to continually improving our Customer Complaints 34 Annual Report to ensure that it provides our Management of Social and Economic Obligations 35 stakeholders with full and frank information OH & S 36 on our performance. We encourage you to Our Organisation 37 provide feedback on any suggestions for further information that would assist you by Our Guiding Policies 37 filling in and returning the Feedback section Regulation 37 located at the end of this report. Corporate Governance 38 Committees of the Board 39 PHOTO CREDITS Management 40 Richard Gibbs Further Information 41 Photos in this report kindly supplied by Financials 43 La Trobe University Bendigo Visual Arts Auditor General’s Report 71 (Photography) students 2003 Your Feedback 72 Eugene O'Brien Tanya Swan Courtney Higgins Prue Hawkey Enquiries: Julie Millowick, Lecturer in Charge of Photography & Photojournalism [email protected] MESSAGE FROM THE CHAIRMAN AND CHIEF EXECUTIVE The year 2003/04 was a significant one for Coliban Water, highlighted by a focus on strategic planning, securing our future water resources and responding to impacts from the ongoing drought. Now in its eighth year, the drought has affected the whole Coliban Water region. All towns are on water restrictions, and the majority of our customers moved to Stage 4 restrictions on 1 June - the most stringent of the 4 stage by-law. From left: Geoff Michell and Gordon McKern On a positive note, the drought has served to focus community attention on the issue of Economic Performance Environmental water supply, and reinforced the need to In the past year the volume of water We recognise the need for close save water as a part of everyday life. In our supplied has fallen with corresponding relationships with stakeholders such as the conversations with the community this year impacts on our customer revenue, although Department of Sustainability and through the media, meetings and research, this has been mostly offset because Environment and the North Central clear support has been generated for the economic and population growth through Catchment Management Authority to ensure need to introduce water conservation developer charges has boosted revenues. quality water supplies from our open methods including a review of water This has meant that the increase in charges catchments. Additional resources allocated restrictions and development of a to customers as part of our approved pricing to our environmental plans will ensure we Permanent Water Savings Plan. plan has been less than it would otherwise continue to maintain a high standard of Our region continues to experience have been. quality raw water sources in a future that clearly includes significant population population and economic growth above the Coliban Water’s reported loss of $674,000 growth in our region. Water quality issues state average, and continuation will place an is a reflection of reduced water revenue associated with industrial and population increasing strain on water resources. resulting from the drought. We have recognised this and commenced growth will continue to drive our efforts to the development of a Water Resources Plan Despite this Coliban Water has been able to ensure appropriate planning within our with a 50 year outlook, in conjunction with improve on the budget position that was set catchments. at the commencement of the year, due to partners including the Department of Our new water reclamation plant for Echuca the significant levels of development that Sustainability and Environment, North and Rochester, being constructed under a have previously been mentioned, Central Catchment Management Authority Partnerships Victoria project with Earth Tech, and regional councils to ensure continued Our cash position remains buoyant with neared completion during the year. This prosperity for our region. around $45 million in deposits. As part of plant will serve to further protect northern We welcomed the release of the State our planned long term financial strategy, we water supplies by reusing all water for Government’s White Paper "Securing Our continue to draw down on our investments farmland irrigation as a supplement to Water Future Together" during the year. to fund our capital program that continues existing supplies. to provide additional and enhanced services It highlighted the important profile of water Coliban Water’s $44 million Envirosafe to our customers. in our communities and reinforced the project to provide reticulated sewerage to 20 initiatives outlined in Coliban Water’s No dividend was paid to the Government for small towns is also nearing an end, with two strategic plan which was endorsed by the 2002/03 financial year, and no dividend more towns completed during the year and Minister Thwaites. will become payable next year on the basis the final four schemes under construction. of this year’s financial result. Through the year we continued our preparation for working in a regulated environment from 1 September 2004.

2 Capital Works Thanks Over $25 million of capital works were At the conclusion of another year, we thank completed through the year including our Board, staff and our business partners $11 million on the Envirosafe Project. for their dedication and support in a difficult Other highlights of our new works include environment. We acknowledge the many the upgrading of our dams to achieve best challenges faced this year, not only by our practice safety standards, a significant customers, but all sections of the business investment in water quality with major and our partners: from reservoir keepers works on treatment plants at Cohuna, maintaining near-empty storages, to the staff Rochester, Lockington and Boort and many who processed a record number of developer other smaller improvements. applications last year, and particularly customer service and field staff who kept Social our communities informed and water Within the past year our community service supplies flowing. responsibilities have been reviewed under We also acknowledge the 30 year the Statement of Obligations, which came contribution of Robert Muir who retired into effect on 28 July 2004. Among the during the year. actions taken to engage fully with the community, we have renewed the Rural Customer Advisory Group and held focus groups and meetings with stakeholders across the region. Mindful of our role as custodian of water supplies for our future generations, Coliban Water established a Youth Advisory Council Geoff Michell during the year to discuss water and Chief Executive wastewater issues, and obtain input and advice from a young person’s perspective. While our offices are based in Bendigo we have ensured that our initiatives for community engagement have applied across the region, including extending the popular Smart Gardens program from the City of Greater Bendigo to neighbouring municipalities, and supporting community events in all areas. Gordon McKern This year also saw an ongoing focus on Chairman occupational health and safety and staff welfare issues including initiatives such as the popular Employer of Choice program, "Coliban Water’s Fit 4 Life".

Coliban Water Annual Report 2004 3 PROFILE

Coliban Water was established on 1 July SERVICES 1992 under the Water Act 1989 as a Regional Urban Water Authority. We are responsible to The major activities of Coliban Water are to the Minister for Water, The Honourable John provide water and wastewater services to Thwaites, and our shareholder is the Victorian urban and rural customers. The services Government. encompass water harvesting and storage; urban water supply; wastewater collection, Coliban Water is one of the larger Victorian treatment and reuse; and rural water supply. regional urban water authorities, with an area Coliban Water also provides trade waste of responsibility covering approximately 20% services to a number of large businesses of Victoria. We manage, maintain and operate including milk processors, abattoirs, a variety over 50 reservoirs and water storage basins of food processors (such as dairy products, across North-Central Victoria and provide small goods and tomatoes), major laundries, water and wastewater services to rural and saleyards, tanneries, wineries, pet food urban customers across an area of 16,550 manufacturers, carpet manufacturers and square kilometres with a population of health services. 130,000. The service area includes 55 towns or service systems, extending from Cohuna Coliban Water supplied 12,657 ML of water and Echuca in the north to Kyneton and to residential customers, 6,722 ML to Trentham in the south. The western boundary non-residential customers, and 7,391 ML to incorporates Boort, Wedderburn, Bealiba and rural customers in 2003/04. Non-revenue Dunolly and the eastern boundary includes water totalled 10,768 ML. Non-revenue KEY TO OPERATIONS Heathcote and Tooborac. water is lost through evaporation, seepage, theft, fire services, mains leaks and bursts and Head Office & Central Operations CUSTOMERS mains flushing. A number of significant Northern Operations programs were commenced this year to Residential properties 55,150 reduce the amount of water lost. These Southern Operations Non-residential properties 6,014 programs included fire service sealing, Service Depots channel repair works, and improved response Rural licence holders 1,724 times to mains bursts. Scale in km 0 10 20 30 40 50 100 Total customers 62,888

The major activities of Coliban Water are to provide water and wastewater services to urban and rural customers. The Value of Assets Owned by Coliban Water Our Key Stakeholders Include: • Customers (domestic urban water and ASSET TYPE VALUE wastewater, commercial and industrial ($m written down value) water and wastewater, rural water Land 11.2 and trade waste customers) Buildings 3.5 • Employees of Coliban Water, and Water infrastructure 231.8 our private sector partners: Wastewater infrastructure 175.0 - Campaspe Asset Management Services Water distribution infrastructure 32.3 - Veolia Water Rural 3.0 - Henry Walker Eltin Headworks 105.3 - EarthTech Corporate assets 0.7 • Shareholder (Victorian Government) Total 547.4 • State and Commonwealth Government agencies and regulators including the: ASSETS STAKEHOLDERS - Essential Services Commission The business utilises a wide range of assets Coliban Water has continued to build on its - Environment Protection Agency to deliver services including: commitment to keep its stakeholders informed - Department of Sustainability and on all aspects of the business operations and Environment • 1,900 km of water mains to engage stakeholders effectively in making - Department of Primary Industries • 1,300 km of sewer mains decisions that impact on them. - Department of Human Services - North Central Catchment • 490 km of rural channels Management Authority • 70 km of main channel - Heritage Victoria - Murray Darling Basin Commission • 212 water and wastewater pumping - Department of Treasury and Finance stations • 23 water treatment facilities • 13 water reclamation facilities Coliban Water Annual Report 2004 5 PROFILE CONTINUED

• Local Government Authorities representing PRIVATE PARTNERSHIPS Castlemaine Wastewater Treatment the communities we serve including: Pty Ltd (CWT) - City of Greater Bendigo Campaspe Asset Management CWT owns and operates the Castlemaine Services Pty Ltd (CAMS) Water Reclamation Plant, the Maldon - Shire of Campaspe CAMS provides services throughout the region sewerage reticulation system and sludge - Shire of Central Goldfields under a ten year contract that commenced on treatment facilities at the Bendigo Water 1 July 2003. These services include: Reclamation Plant. A Build Own Operate - Shire of Gannawarra Transfer contract for the provision of these • Operations and maintenance of water - Shire of Loddon services commenced its 25 year operations and wastewater networks, including phase in June 2000. - Shire of Macedon Ranges treatment plants CWT is owned by Henry Walker Eltin. - Shire of Mt Alexander • Asset management - Shire of Hepburn • Information technology ETE Coliban Pty Ltd (ETE) ETE is constructing the Campaspe Water - Shire of Mitchell • Revenue Reclamation Plant under a Build Own Operate • Community and industry groups CAMS is a consortium of United Utilities Transfer contract. The 25 year operations such as the: Australia and Origin Energy Asset phase is to commence following completion Management. of construction expected in late September - Victorian Farmers Federation 2004. Bendigo Water Services - Harcourt & District Fruit Growers ETE is owned by Earthtech. Association Pty Ltd (BWS) - Friends of Campbell’s Creek BWS owns and operates water treatment Veolia Water plants that supply treated water to the Veolia Water operates the Kyneton Water - Landcare groups such as Langley Bendigo, Castlemaine and Kyneton areas. Reclamation plant under a Design Build Landcare and Axedale Landcare A Build Own Operate Transfer contract for the Operate contract until October 2005. - Other environmental stakeholders are provision of these services commenced its 25 identified for specific projects and issues year operations phase in June 2002. BWS is owned by Veolia Water. WATER SECURITY FOR OUR FUTURE

In 2003/04 we initiated the development of demand across our region and increase Our new strategic plan is structured around a new strategic plan for Coliban Water. This the substitution of reclaimed water for seven key result areas with principles, coincided with the major State Government raw water. objectives and targets. A summary version water policy initiative "Securing Our Water of these is presented in the table below. We must also change our approach and Future" and the Council of Australian A full version that includes our plans for mindset to reduce our greenhouse gas Government’s "National Water Initiative". achieving these is available through our emissions and energy consumption, as well website www.coliban.com.au Our new strategic plan sets out a new as implement triple bottom line practices priority for the business. "Water security for that demonstrate a commercially sustainable our future" calls for a change in current path to the future. patterns of consumption to reduce total

Key Result Customer Securing Water for Industry Leadership People & Culture Excellence in Commercial Viability Environmental Area Expectations and the Future Processes Sustainability Service

Principle We acknowledge We seek to provide Within the water We support the We will actively We will maintain We will work and that our customer for our customers industry we will inclusion of all our pursue excellence in our commercial invest to ensure that segments have needs by minimising actively engage staff in the all our processes to viability without our eco footprint is different needs and water losses and other water development of our the point of cost compromising our measured and we will base our reducing demand in companies and the strategic direction benefit breakeven. Triple Bottom Line. reduced. Our actions on an the first instance. community at all and plans. We We will continually We accept that our investment in the understanding of We will take all levels. In doing so encourage all our improve all our smaller communities environment will their needs gained steps possible to we will be staff to be processes to ensure require cross extend beyond our through meaningful ensure that we work respectful, ethical innovative in their we operate at subsidisation for own operations to and validated within our current and balanced in our thought and diverse industry best their supply systems other spheres of the market research and bulk water approach. Our in their opinions. practice and that to be maintained regional consultation entitlements to approach to risk to our and will continue to environment. processes. minimise our knowledge will be We will invest in our customers and do so. environmental open and we will staff to develop stakeholders has We commit impact. share with skills and been minimised. We are committed ourselves to stakeholders and competencies We will actively to the principle of a ensuring that the We place high value the community the delivering on both measure and fair return to our needs of our on all grades of knowledge that we capabilities required improve the Triple shareholder in both growing regional water and will develop. of our organisation, Bottom Line impact the short and long community and actively pursue and for their career of all our processes. term. existing customer opportunities to development. base will be replace raw water satisfied. with reclaimed water and gain We will provide community ongoing investments acceptance for these to improve and practices. maintain assets in all our systems.

Objective To deliver high To secure sufficient To be a leader and To be an To continually To ensure the To contribute to the quality services to sustainable water active participant in organisation that improve systems business is sustainability of the meet current and resources for the the water industry attracts high quality and processes to commercially sound. regional future customer future needs of the and the regional staff operating in a ensure that quality environment. needs and region. community. ‘can do’ culture services are expectations. pursuing excellence delivered efficiently in service delivery. and effectively, with greater consistency in desired outcomes and decreased risk.

Targets • Customer • Total demand • Develop a • High staff • Attain • Positive cashflows • Greenhouse satisfaction by 15% Regional satisfaction organisational gas emissions Sustainable certification for: • 100% Compliance • Substitute • Apply TBL to all - QA • Beneficial use Water Plan with Customer reclaimed water our processes - EMS of reclaimed Contract for raw water • Engagement - OH & S water with all levels - HACCP • Sewer chokes • Sewer of government, and collapses • Reliability and overflows community, consistency • Customer and industry and Community input developers

Coliban Water Annual Report 2004 7 ECONOMIC PERFORMANCE

Coliban Water 2003/04 Performance Indicators BUSINESS PLAN TARGET ACTUAL RESULT VARIANCE 2003/04 2003/04 % 1. Long Term Profitability Indicator 0.6% -0.1% -116.7% 2. Owners Investment Indicator 0.6% -0.1% -116.3% 3. Long Term Financial Viability Indicator 0.0% 0.0% 0.0% 4. Liquidity and Debt Servicing Indicator 0.0% 0.0% 0.0% 5. Operating Efficiency Indicator 5.1 - Water Supply Bulk (Headworks) $30.77 $32.46 -5.5% 5.2 - Water Supply Reticulation $210.46 $252.19 -19.8% 5.3 - Water Supply Treatment $470.43 $633.44 -34.7% 5.4 - Wastewater Reticulation $375.30 $351.54 6.3% 5.5 - Wastewater Treatment $820.17 $908.03 -10.7% VARIANCE REPORT 4. Liquidity and Debt Servicing Indicator The Liquidity and Debt Servicing Indicator measures the number of 1. Long Term Profitability Indicator times interest expense is covered by earnings. Coliban Water does not have any debt therefore the value of this indicator is zero. and 2. Owner's Investment Indicator 5. Operating Efficiency Indicator The corporate plan target calculations for these indicators include an 5.1 Water Supply Reticulation allowance for a 50% write down of fixed assets to their fair value in The actual volume of water supply reticulation transported during line with the requirements of AASB1041. The write down did not 2003/04 was considerably lower than what was allowed for in the occur during 2003/04. Total assets are therefore significantly higher corporate plan target calculation for this indicator due to extremely and the resultant depreciation is almost double what was allowed for dry weather conditions. Actual expenditure is also higher than allowed in the corporate plan calculations. for in the corporate plan target calculation due to additional electricity The effect of considerably higher actual depreciation on the 2003/04 charges as a result of the need to pump water from Eppalock result was partially offset by higher revenue. Even though water Reservoir. restrictions led to lower revenue from rates and charges, contributions received from development were more than double what was allowed 5.2 Water Supply Treatment for in corporate plan calculations for this indicator. The actual volume of water supply treated during 2003/04 was considerably lower than what was allowed for in the Corporate Plan 3. Long Term Financial Viability Indicator target calculation for this indicator due to water restrictions. The Long Term Financial Viability Indicator measures net debt as a 5.3 Wastewater Treatment percentage of total assets. Coliban Water does not have any debt Actual wastewater treatment expenditure is higher than expected due therefore the value of this indicator is zero. to additional costs to desludge a lagoon at the Kyneton Water Reclamation Plant. The desludging costs were $0.6 million more than what was allowed for in the corporate plan target calculation for this indicator.

Coliban Water Annual Report 2004 9 ECONOMIC PERFORMANCE CONTINUED

ECONOMIC Economic Flows between Coliban Community service obligations, funded by Water and our Key Stakeholders Government and provided by Coliban Water, PERFORMANCE This year Coliban Water’s remuneration to were valued at $2.168 million. INDICATORS employees totalled $3.655 million. We also Coliban Water’s return on total assets The Economic Performance Indicators paid our suppliers $31.590 million for the (a long term profitability indicator) was consider our impacts on the economic provision of goods and services. This 0.1% and the return on equity (an indicator circumstances of our stakeholders and on included $12.263 million to Campaspe Asset of the return on the owners’ investment) economic systems at the local, state and Management Services and $11.957 million was -0.1%. national levels. They cover both direct and in payments under Partnerships Victoria Coliban Water is included under Victoria’s indirect impacts. contracts for Castlemaine Water Reclamation Plant and water treatment services for State Tax Equivalent Regime. However our Indicators for measuring direct economic Bendigo, Castlemaine and Kyneton. overall financial position in 2003/04 does impacts are designed to measure the not require us to pay income tax. financial flows between the organisation and Our operating revenue for 2003/04 was its key economic stakeholders, for example, $44.470 million of which $33.776 million the value of net sales to customers or was from rates and charges for our services. salaries to employees. Measuring indirect Developer contributions were $2.524 million. impacts is more difficult and for this year’s report we have limited this to a discussion of some of our interactions with the regional economy in which we operate. Summary of Coliban Water’s Economic Impacts on our Key Stakeholders ASPECT PERFORMANCE INDICATOR 2002/03 2003/04 Customers Monetary amount received and receivable from customers for the sales of products $40.051m $41.946m and services Suppliers Monetary payments and payables by Coliban Water to suppliers for all goods, $31.072m $31.590m materials and services purchased Employees Monetary value of total remuneration to employees (all salary package payments including cash salaries, superannuation, salary sacrifice amounts for items such as cars, etc. Does not include salary oncosts such as payroll tax, workcover payments, fringe benefits tax) $3.816m $3.655m Providers of Return on equity -0.3% -0.1% capital Public sector Total sum of taxes paid 0 1 0 1 State Government Dividend 0 2 0 2 ,3 Value of community service obligations provided: Provision of concessions to pensioners $1.972m $2.113m Rebates paid to not-for-profit organisations under the water and sewerage rebate scheme $0.243m $0.244m Utility relief grant scheme payments $3,613 $2,574 Contributed capital from the Victorian Government $2.529m 0 1,323 rebates processed under the Water Smart Gardens and Homes Rebates Scheme $139,540

1 Coliban Water is subject to the Victorian Tax Equivalent Regime, however, because tax losses exceeded taxable profits, no tax was paid. 2 The State Government Dividend is determined by the Treasurer following consultations between Coliban Water, the Minister for Water and the Treasurer. 3 The process to determine the Dividend applicable to the 2003/04 financial year has not yet been completed at the reporting date.

Coliban Water Annual Report 2004 11 ECONOMIC PERFORMANCE CONTINUED

SUMMARY OF COLIBAN WATER’S FINANCIAL PERFORMANCE

Summary of Financial Results 2003/04 2002/03 2001/02 2000/01 1999/00 ($’000) ($’000) ($’000) ($’000) ($’000) REVENUE

Revenue from ordinary activities 47,501 45,596 44,479 42,264 37,940

EXPENDITURE Expenditure from ordinary activities 48,175 46,878 36,847 31,745 30,679 Significant items of expenditure from 0 758 34,230 0 0 ordinary activities NET RESULTS (674) (2,040) (26,598) 10,519 7,261

THE ROLE OF COLIBAN • Vineyards/wineries COMPETITION POLICY WATER IN THE REGIONAL • Wholesale and retail nurseries Coliban Water has substantially implemented the National Competition Policy as far as its • Health care ECONOMY scope of responsibility permits. For example Coliban Water provides water and • Sports (including horse racing, golf, we have had "pay for use" water pricing, wastewater services to various industries cricket, football, lawn bowls, tennis etc) consisting of a fixed and a variable throughout its region. Industries for which (volumetric) charge for many years, and cross • Tourism our services are critical include: subsidies between business units are • Mining transparent and are reported in the Annual Food Processing Report. We continue to monitor These industries form the lifeblood of our developments in National Competition Policy • Dairying (milk & cheese production, milk regional economy and depend on both a powder, yoghurts & dairy desserts) secure and safe supply of water as well as Vertical structural and financial separation of • Tomato processing the provision of trade waste services to business functions has been in place for a ensure that production does not impact on number of years and these business • Baby foods the environment. functions are reported separately in the Annual Accounts. Coliban Water has • Canneries In recent years many of these industries have introduced competition in service delivery by benefited from our new water treatment • Small goods the extensive involvement of the private plants in Bendigo, Castlemaine and Kyneton. sector. This has been achieved through • Chicken and egg processors In 2003/04 some smaller communities were competitively bid Public Private Partnership connected to our water reclamation plants • Abattoirs (both general and specialised) contracts for infrastructure projects and by under the Envirosafe program. While this outsourcing major functions. • Pet food has directly benefited householders and the • Piggeries environment it has also provided these Coliban Water is closely involved in annual communities with the ability to attract new performance benchmarking studies through Other Industries industries to their towns and provide for the Victorian Water Industry Association and their long term economic sustainability. Water Services Association of Australia. This • Tanning We continue to work actively with Local year we participated in the inaugural Water • Carpet & wool dyeing Government to assist in attracting new Services Association of Australia’s Asset industries to this region. Management Benchmark Audit (AquaMark), • Saleyards which identified areas of asset management • General manufacturing practices for improvment. • Laundries • Orchards

12 OUR FUNCTIONS

SECURITY OF SUPPLY Rural Usage As at 30th June 2004 customers connected Water Harvesting to the Coliban Rural System held licences for While spring 2003 was an improvement on 15,005 ML. For the 2003/04 season an the previous few seasons, it still yielded initial seasonal allocation of 40% licence below average inflows into our water supply volume was made on 12 September 2003 to storages on the Coliban River and into licensees in the Coliban Rural System. The Goulburn-Murray Water’s Lake Eppalock of allocation was raised to 50% on 15 October which we have an 18% capacity share. and to 65% on 1 November, and did not rise Consequently, Coliban Water’s headworks further before the end of the season. storages, which began the year well below Customers took delivery of 7,391 ML of the full capacity, were again severely depleted by water allocated, resulting in an overall usage winter 2004. of 49.26% of licence volume.

Water Extracted by Source 2003/04 ML Direct river extraction 460 Groundwater 259 Draw from dams/impounding reservoirs 28,744 Bulk supplies (raw) 8,120 Bulk supplies (treated) 0 Total water supplied 37,583

Coliban Water Annual Report 2004 13 OUR FUNCTIONS CONTINUED

Bulk Water Entitlements Coliban Water holds bulk water entitlements in the Coliban, Campaspe, Goulburn and Murray systems. A bulk entitlement was granted for the Wimmera System on 10 June 2004 and will come into force next year. Bulk Water Entitlements for Loddon System will be formally granted during next year.

Bulk Water Diversions for Coliban Water

SYSTEM ENTITLEMENT VOLUME NOTES VOLUME (ML) TAKEN CAMPASPE • Axedale & Goornong 155 130 60 ML transferred to Rochester (Campaspe) • Rochester 345 240 Ten-year average must be below 134 ML/year COLIBAN • Bendigo area, 50,885* 28,744** * Entitlement Volume Castlemaine area, Coliban Water’s 50,260 ML base BWE was supplemented Kyneton area, by a transfer of 1000 ML from Murray BWE and 30 ML Heathcote area & transferred by football clubs. It was reduced by 405 ML Coliban rural by a transfer to Perseverance Mining ** Diversions 16,827 ML from Malmsbury Reservoir to Coliban Main Channel 330 ML from Lake Eppalock to Heathcote 10593 ML from Lake Eppalock to Bendigo Pipeline 994 ML from Lauriston Reservoir to Kyneton GOULBURN • Boort 255 242 170 ML transferred from Boort to supplement Rochester • Dingee 30 2 20 ML transferred from Dingee to supplement Rochester • Lockington 112 87 18 ML transferred from Lockington to supplement Pyramid Hill • Macorna 40 7 25 ML transferred from Macorna to Rochester • Mitiamo 60 33 • Mysia 15 9 • Pyramid Hill 318 318 18 ML transferred to Pyramid Hill from Lockington • Rochester 1,615 1,484 A total of 215 ML transferred to Rochester

GROUNDWATER • Elmore 284 169 • Trentham N/A 90 LODDON • Laanecoorie, Dunolly, Bealiba N/A 165 & Tarnagulla • Bridgewater, Inglewood, Serpentine and Jarklin N/A 295 WIMMERA • Korong Vale, Wedderburn, N/A 398 Borung & Wychitella MURRAY • Cohuna, Echuca, Gunbower 5,285 5,170 1,000 ML transferred from Murray to supplement the & Leitchville Coliban System

14 Temporary Transfer of Bulk Water Coliban Water to Coliban Water Ministerial approval for these (necessary Entitlement Five transfers were made between bulk under Section 46 of the Water Act 1989) During 2003/04, Coliban Water made the water entitlements held by Coliban Water was sought on 13 May 2004 and granted following temporary transfers of BWE: to ensure that usage did not exceed on 31 May 2004. allocation: Third Party to Coliban Water Coliban Water to Third Party • 4 June 2004, 170 ML from Boort to No purchases or sales were made this Coliban Water transferred water to Rochester (Goulburn) bulk water season via Watermove (formerly Northern Perseverance Exploration, Fosterville as per entitlement the extended agreement to supply the Victorian Water Exchange). Three transfers mining company to 2007: • 4 June 2004, 25 ML from Macorna were made to Coliban Water as part of an to Rochester (Goulburn) bulk water agreement to relax water restrictions on • 15 August 2003, 405 ML from Lake entitlement watering some community recreation Eppalock bulk water entitlement to facilities at Heathcote and Bendigo: Perseverance Mining • 4 June 2004, 25 ML from Dingee to Rochester (Goulburn) bulk water • 5 April 2004, 3 ML for Heathcote entitlement Football Club to Lake Eppalock bulk water entitlement • 4 June 2004, 18 ML from Lockington to Pyramid Hill bulk water entitlement • 22 April 2004, 2 ML for White Hills Football Club to Lake Eppalock bulk • 4 June 2004, 60 ML from water entitlement Axedale/Goornong to Rochester (Campaspe) bulk water entitlement • 12 May 2004, 25 ML for Bendigo Junior Football League to Lake One transfer was made between bulk water Eppalock bulk water entitlement entitlements held by Coliban Water to carry forward water allocated but not used under a delivery entitlement that would otherwise have been foregone: • 15 June 2004, 1,000 ML from Murray to Lake Eppalock bulk water entitlement

Coliban Water Annual Report 2004 15 OUR FUNCTIONS CONTINUED

Water Restrictions

At the start of the 2003/04 year, all towns across the Coliban Water region were on water restrictions. During the year Coliban Water implemented the following water restrictions:

Water Restrictions in the Coliban Region 2003/04

SUPPLY SYSTEM SUMMARY OF RESTRICTIONS 2003/04 CAMPASPE (Axedale & Goornong) Stage 2 remained in force for the whole year Coliban Urban (Bendigo area, Castlemaine area, Elphinstone, Stage 3 was in force at 1 July 2003 Taradale, Raywood, Sebastian, Malmsbury, Stage 4 introduced 1 June 2004 and remained in force on 30 June 2004 Kyneton, Tylden, Heathcote & Tooborac) COLIBAN RURAL Initial seasonal allocation of 40% licence volume announced 15 September 2003 Revised allocation of 50% announced on 15 October 2003 Revised to 65% on 1 November 2003 End of season allocation remained at 65% GOULBURN (Boort, Dingee, Lockington, Macorna, Mitiamo, Stage 2 was in force at 1 July 2003 Mysia, Pyramid Hill & Rochester) Relaxed to Stage 1 on 1 October 2003 Stage 1 remained in force at 30 June 2004 GROUNDWATER (Elmore & Trentham) Stage 2 was in force at 1 July 2003 Relaxed to Stage 1 on 1 October 2003 Stage 1 remained in force at 30 June 2004 LODDON (Bealiba, Bridgewater, Dunolly, Inglewood, Stage 2 was in force at 1 July 2003 Jarklin, Laanecoorie, Serpentine & Tarnagulla) Stage 3 introduced on 1 September 2003 and remained in force on 30 June 2004 MURRAY (Cohuna, Echuca, Gunbower & Leitchville) Stage 2 was in force at 1 July 2003 Relaxed to Stage 1 on 1 October 2003 Stage 1 remained in force at 30 June 2004 WIMMERA (Borung, Korong Vale, Wedderburn & Wychitella) Stage 3 remained in force for the whole year The Dams Improvement Project is a multimillion dollar program currently underway to upgrade Coliban Water’s highest priority dams in order to reduce associated risk.

Water Storage Design work continued for the two Trentham Bealiba Reservoir reservoirs and Caledonia Reservoir. During In January 2004 we handed Bealiba Dams Improvement Project the year, Tenix Alliance Pty Ltd was Reservoir to DSE following consultation with Many of our dams have been performing as appointed to undertake the upgrade works the local community and relevant authorities. designed for over 100 years. However, all to Trentham No. 1 Reservoir. In recent years This will now be operated by a local assets have limited lives and industry this storage has been limited to 80% of Committee of Management for recreational standards for design and construction have capacity as a temporary measure to reduce purposes. The storage has been redundant risen dramatically in recent decades. The leakage. The upgrade will allow it to again for water supply purposes for a number of Dams Improvement Project is a multimillion operate at full capacity. years since construction of a treated water dollar program currently underway to supply pipeline from Dunolly. It is important Tenders were also called for work on upgrade Coliban Water’s highest priority to note that not all redundant dams can be upgrading Caledonia Reservoir. Once dams in order to reduce associated risk. retained. Typically they must have their own upgraded, the dam will not only meet catchment, be constructed to an acceptable The following storages required work under current day design/construction standards standard, not detract significantly from the this project: but all of the water stored in the dam will be local environment (e.g. barrier to fish able to be utilised to meet the water supply • Bendigo – at Big Hill, Spring Gully, No.7 migration) and there must be an appropriate needs of Heathcote. and Crusoe Authority willing to undertake financial and • Harcourt – at Barkers Creek Coffey Geosciences Pty Ltd continued work management responsibility for the storage on designs for the upgrade to the Barkers and surrounds. In the case of Bealiba • Heathcote – at Caledonia Creek Reservoir spillway and embankment. Reservoir these requirements could be met • Trentham – at Trentham No.1 and No.2 This work will ensure the continued supply and the balance of environmental and to rural customers in the Harcourt area. community needs appeared to be better • Tylden – at Fernhill No.1 and No.2 Coliban Water has undertaken a project in served by retaining the dam. In 2003/04 our contractor, Geotech Pty Ltd, collaboration with VRFish on resnagging completed the upgrade works to Spring Barkers Creek Reservoir with dead trees to Gully (full upgrade), Crusoe (partial improve aquatic habitat. The Reservoir is upgrade), Barker’s Creek (outlet works) and regularly stocked by DSE and serves as both No. 7 (spillway and beaching). Design and a rural water supply dam as well as a works remain to be completed on upgrading popular local fishery. The trees located the No. 7 outlet. As Crusoe and No. 7 below the full supply level of the dam will reservoirs are no longer required for water provide shelter and an improved food supply supply, ownership is to be transferred to the for many aquatic species. A number of other Department of Sustainability and improvements have also been completed Environment with management to be such as fencing replacement incorporating undertaken by the City of Greater Bendigo pedestrian access, improved car parking and for recreational use as part of the "Beach for vehicle access. Bendigo" project.

Coliban Water Annual Report 2004 17 OUR FUNCTIONS CONTINUED

Customer Service Reliability of Supply – Urban Water The past year was the last year of the Water Supplies Services Agreement. It is to be replaced by a Statement of Obligations issued by the CORPORATE ACTUAL VARIANCE % Minister for Water on 28 July 2004 PLAN TARGET % RESULT % Properties interrupted ratio 1 14.0 12.9 -1.1% Customer Service Objectives – Water Reticulation Interruption time 2 2.5 hours 2.4 hrs -4% • Our stated response time of four hours to begin fixing a priority one supply 1 = number of properties that experienced a service interruption / total properties receiving water x 100 problem was met on 100% of 2 = Average time taken to restore an interrupted service occasions. • Our stated response time of 24 hours to begin fixing a priority two supply problem was met on 97.9% of occasions. • Our stated time of five hours to restore customer supplies was met 97.2% of the time, a variance of -0.8% on the target of 98% • Our fully treated water supplies met their quality targets for customers 99.1% of the time. • Our partially treated water supplies met their quality targets for customers 97.4% of the time. Water Quality at Customer Tap - 2003/04

Water Quality Guidelines E. coli Coliform Turbidity Colour pH (0/100ml) (0/100ml) (<5 NTU) (<15 NTU) (6.5-8.5) Supply Zone Target Target Target Target Target >=98% >=95% >=95% >= 95% >=95% See relevant water quality comments below Actual % Actual % Actual % Actual % Actual %

Axedale 100% 98% 100% 100% 100% Bealiba 100% 56% 100% 100% 100% Bendigo: • Belvoir Park 100% 60% 100% 100% 100% • Big Hill 100% 100% 100% 100% 100% • Edwards Road 100% 100% 96% 100% 100% • Huntly 100% 100% 100% 100% 100% • Marong 100% 100% 100% 100% 100% • Sandhurst 100% 100% 100% 100% 100% • Specimen Hill 100% 100% 100% 100% 100% • Junortoun 100% 100% 100% 100% 100% Boort 100% 98% 100% 100% 100% Bridgewater 100% 94% 100% 100% 100% Castlemaine 100% 99% 100% 100% 100% Chewton 100% 100% 96% 100% 100% Cohuna 100% 100% 96% 100% 96% Dunolly 100% 94% 100% 100% 100% Echuca 100% 99% 96% 100% 100% Elmore 98% 94% 100% 100% 100% Fryerstown 100% 100% 100% 100% 100% Goornong 100% 96% 100% 100% 100% Guildford 100% 100% 100% 100% 100% Gunbower 100% 100% 100% 100% 100% Harcourt 100% 100% 100% 100% 95% Heathcote 100% 100% 100% 100% 100% Inglewood 98% 86% 100% 100% 100% Korong Vale 100% 98% 100% 100% 100% Kyneton 100% 99% 96% 100% 100% Laanecoorie 100% 100% 96% 100% 100% Leitchville 100% 100% 95% 100% 100% Lockington 100% 100% 91% 100% 100% Maldon 100% 77% 100% 100% 100% Malmsbury 100% 100% 100% 100% 100% Newstead 100% 100% 100% 100% 100% Park Valley 100% 98% 100% 100% 100% Pyramid Hill 100% 100% 100% 100% 100% Raywood 100% 100% 100% 100% 100% Rochester 100% 98% 95% 100% 96% Serpentine 100% 93% 100% 100% 100% Taradale/Elphinstone 100% 100% 100% 100% 87% Tarnagulla 100% 96% 96% 100% 100% Tooborac 100% 100% 100% 100% 96% Trentham 100% 100% 100% 100% 96% Tylden 100% 100% 100% 100% 96% Wedderburn 98% 89% 100% 100% 100% NON-POTABLE Actual % Actual % Target N/A Target N/A Borung 49% 2% Dingee 38% 4% Jarklin 18% 4% Macorna 43% 19% Mitiamo 64% 15% Mysia 25% 2% Sebastian 70% 44% Wychitella 53% 30%

Coliban Water Annual Report 2004 19 OUR FUNCTIONS CONTINUED

The following table shows how Coliban Water treats our Water Quality Comments water to make it safe to drink. Coliform Failures • Belvoir Park – failure due to depletion of chlorine residual through storage tanks and distribution system • Maldon – failure due to depletion of chlorine residual through transfer WATER pipeline and storage tank SUPPLY

SYSTEM Water Potable Alum/alum Chlorhydate Polyelectrolyte Carbon Dioxide Clarification Filtration Ozone Carbon Activated Chlorine Ammonia Ultraviolet Lime/Soda Ash/ Caustic Soda/ Sulphuric Acid Fluoride • Bealiba – failure due to depletion of chlorine residual through transfer Axedale ✓✓✓ ✓ ✓ ✓ pipeline and storage tanks Bealiba ✓✓✓ ✓ ✓ p ✓✓ ✓ • Bridgewater – failure due to depletion Bendigo ✓✓ ✓ m ✓✓ ✓ ✓ ✓✓ of chlorine residual through transfer Boort ✓✓✓ ✓ ✓ ✓ ✓ pipeline and storage tank Borung Bridgewater ✓✓ ✓ ✓ p ✓✓ • Inglewood – failure due to depletion of Castlemaine ✓✓ ✓ m ✓✓ ✓ ✓ ✓ chlorine residual through transfer Cohuna ✓✓✓ ✓ ✓ ✓ ✓ pipeline and storage tank Dingee • Dunolly – failure due to depletion of Dunolly ✓✓✓ ✓ ✓ p ✓✓ ✓ chlorine residual through transfer Echuca ✓✓p ✓✓ p ✓✓✓ pipeline and storage tank Elmore ✓✓✓ Elphinstone/ • Elmore – failure due to method of Taradale ✓✓ ✓ m ✓✓ ✓ ✓ ✓ disinfection (UV does not provide a Goornong ✓✓ ✓ ✓ ✓ ✓ disinfection residual in the distribution Gunbower ✓ m ✓ system) Heathcote ✓✓✓ ✓ ✓ ✓ ✓ ✓ • Serpentine – failures due to depletion of Inglewood ✓✓ ✓ ✓ p ✓✓ chlorine residual through storage tank Jarklin and distribution system Korong Vale ✓✓✓ ✓ ✓ p ✓✓ ✓ Kyneton ✓✓ ✓ m ✓✓ ✓ ✓ ✓✓ • Wedderburn – failure due to depletion Laanecoorie ✓✓✓ ✓ ✓ p ✓✓ ✓ of chlorine residual through transfer Leitchville ✓✓ ✓ ✓ ✓ ✓ pipeline and storage tank Lockington ✓✓✓ ✓ ✓ ✓ ✓ Macorna Turbidity Maldon ✓✓ ✓ m ✓✓ ✓ ✓ ✓ • Lockington – occurred during transition Malmsbury ✓✓✓ ✓ m ✓✓ ✓ ✓ ✓✓ between old water treatment plant Mitiamo and new Mysia Newstead ✓✓ ✓ m ✓✓ ✓ ✓ ✓ pH Pyramid Hill ✓✓✓ ✓ ✓ P ✓✓ • Taradale/ Elphinstone – failures Raywood ✓✓ ✓ ✓ ✓ ✓ marginal, pH increased slightly through Rochester ✓✓✓ ✓ ✓ ✓ ✓ distribution system due to contact with Sebastian ✓ cement lined pipes Serpentine ✓✓✓ ✓ ✓ p ✓✓ Tarnagulla ✓✓✓ ✓ ✓ p ✓✓ ✓ Tooborac ✓ m ✓ Trentham ✓ pm✓✓ ✓ Tylden ✓✓ ✓ m ✓✓ ✓ ✓ ✓✓ Wedderburn ✓✓✓ ✓ ✓ p ✓✓ ✓ Wychitella

Legend: ✓ = used in water treatment p = periodic as required m = microfiltered

20 Water Quality Improvement Lockington Water Treatment Plant During the year a decision was taken to Program Upgrade ($1.4m) decommission the Bridgewater and Raywood The new DAFF (Dissolved Air Flotation Water Treatment Plants and supply the WaterBITS – Water Treatment Plants Filtration) plant was completed in Late 2003 Bridgewater, Inglewood, Raywood and Water Quality improvements at the Cohuna, at the Lockington Water Treatment Plant Sebastian communities with drinking water Lockington, Rochester and Boort water enabling water treatment of up to 1 ML per from the Bendigo system. Investigations into treatment plants have been substantially day. Works completed include a new plant pipeline routes to these communities have completed under $9.5 million WaterBITS control and automation system and chemical commenced. program (Building Improved Treatment treatment system. Systems). Planning and investigations are continuing to determine the extent of Rochester Water Treatment Plant Water Treatment Plant Sludge improvements required at Leitchville, Upgrade ($3.4m) This year has seen the development a Gunbower, Elmore, Dingee and Mitiamo. The works at the Rochester Water Treatment management plan for the potential reuse of Plant have provided better water quality, water treatment plant sludge by Coliban Water Boort Water Treatment Plant increase treatment capacity to 11 ML per in partnership with CAMS. The challenge faced Upgrade ($1.5m) day and increased water security with the by Coliban Water is to find a beneficial reuse Works at the Boort Water Treatment Plant construction of 1.2 ML treated water for the sludge in order to divert the waste from reached practical completion early in 2004 storage. During the year the six filters, landfill. The water treatment plants in our enabling water treatment of up to 2.5 ML chemical treatment system, waste disposal region use either membrane technology or per day. During the year the new filters, system and an automated control system alum/poly dosing for coagulation purposes, waste disposal system and plant control commenced full operation. systems were commissioned. which effectively remove the sediment from the raw water supply at each site. The resulting WaterBITS – Pipelines by-product is termed "sludge" and is made Cohuna Water Treatment Plant • Heathcote to Tooborac Pipeline - up of the sediment and small amounts of Upgrade ($2.7m) Easements were acquired for the coagulants. The management plan tables the The upgrade works at the Cohuna Water pipeline to Tooborac. Applications for risks associated with current practices and Treatment Plant reached practical completion planning permits were made and establishes some beneficial waste minimisation early in 2004 enabling water treatment of archaeological and environmental and reuse options to meet set environmental up to 5.5 ML per day. During the year the studies undertaken. new filters, waste disposal system, chemical objectives. The plan will be reviewed with EPA treatment system and plant control and • Bendigo to Axedale Pipeline – the over the coming year. automation systems were all completed and easement acquisition process continued commissioned. as did detailed investigation.

Coliban Water Annual Report 2004 21 OUR FUNCTIONS CONTINUED

Water and Wastewater Services Consumption Data

2003/04 WATER CONSUMPTION & WATER CUSTOMER NUMBERS BY SYSTEM

WATER SUPPLY WATER SUPPLY 3 YEAR AVERAGE CONSUMPTION WASTEWATER TOTAL RESIDENTIAL NON RESIDENTIAL ANNUAL DEMAND VARIATION Water Supply System No. No. ML No. ML No. ML Axedale <1 107 24 10 4 117 29 35 -18% Bealiba <1 85 11 14 3 99 14 17 -21% Bendigo 33,896 33,301 6,871 2,981 2,769 36,282 9,640 12,682 -24% Boort 124 381 132 120 61 501 193 211 -9% Borung <1 23 4 3 <1 26 4 5 -24% Bridgewater 201 193 36 33 15 226 50 65 -23% Castlemaine 3,712 4,913 948 442 534 5,355 1,482 1,805 -18% Cohuna 1,046 1,183 612 164 97 1,347 709 768 -8% Dingee <1 30 6 15 3 45 10 11 -13% Dunolly <1 390 64 59 18 449 82 94 -12% Echuca 5,559 5,209 1,826 768 1,325 5,977 3,152 3,575 -12% Elmore 380 360 103 77 49 437 152 166 -9% Elphinstone/Taradale <1 220 40 15 6 235 46 54 -14% Goornong <1 147 43 25 8 172 51 62 -18% Gunbower 44 128 47 44 16 172 63 68 -8% Heathcote 766 1,017 170 126 67 1,143 237 294 -19% Inglewood 344 409 64 39 34 448 98 114 -15% Jarklin <1 9 1 4 1 13 2 2 -22% Korong Vale <1 131 19 8 1 139 20 23 -13% Kyneton 2,231 2,124 405 386 375 2,510 781 846 -8% Laanecoorie <1 37 6 4 <1 41 6 8 -22% Leitchville 43 229 170 43 245 272 415 461 -10% Lockington 214 199 50 28 8 227 59 63 -6% Macorna <1 28 1 3 0 31 1 2 -11% Maldon 690 830 155 107 55 937 210 272 -23% Malmsbury 249 237 36 25 7 262 42 50 -14% Mitiamo <1 52 9 11 3 63 12 15 -17% Mysia <1 10 1 2 <1 12 1 1 -26% Newstead <1 291 53 38 11 329 64 81 -21% Pyramid Hill 87 266 72 51 137 317 208 195 7% Raywood <1 81 19 14 7 95 25 35 -28% Rochester 1,322 1,293 458 181 814 1,474 1,272 1,312 -3% Sebastian <1 64 16 4 1 68 18 24 -28% Serpentine <1 72 16 19 6 91 21 31 -31% Tarnagulla <1 117 13 13 3 130 16 21 -25% Tooborac <1 52 9 8 1 60 11 11 -6% Trentham 171 368 57 61 19 429 76 84 -10% Tylden 70 101 17 9 3 110 20 19 4% Wedderburn <1 450 71 58 16 508 88 96 -9% Wychitella <1 13 2 2 <1 15 2 2 -15% Total 51,149 55,150 12,657 6,014 6,722 61,164 19,380 23,680 -18%

22 OUR FUNCTIONS CONTINUED

Water Reclamation Plants WASTEWATER Groundwater Management at our Three new plants at Pyramid Hill, Coliban Water provides wastewater services Water Reclamation Plants Gunbower/Leitchville and Boort were to 51,149 properties in our region. Thirteen Coliban Water’s wastewater treatment commissioned during the year. water reclamation plants are operated by and reuse activities have the potential Coliban Water and our partners across the to impact on groundwater as a result of Report on EPA Compliance region. Those at Bendigo, Castlemaine and seepage from wastewater lagoons or Kyneton provide tertiary treatment and the Coliban Water holds waste discharge poor management of reclaimed water remainder are secondary treatment facilities. licences from the EPA that set limits for the irrigation. To monitor and reduce the volume and quality of discharges to land and potential for any groundwater impacts, Customer Service Objectives – water. These licences also set the monitoring we have implemented an extensive Sewerage Collection and reporting requirements as well as the groundwater monitoring program at environmental management requirements. • Our stated response time of one hour to each of the treatment plants. Bores are begin fixing a sewerage problem was All wastewater effluent discharges are installed at least two years prior to plant met on 97.4% of occasions. sampled and tested for various parameters construction to establish background periodically to monitor compliance with the levels and monitoring programs are in • Our stated time of five hours to restore licence conditions. place to observe monthly changes in a customer’s service was met 98.6% of groundwater levels and regular changes the time. In 2003-04 Coliban Water held 10 waste in groundwater quality. These discharge licences, for the water reclamation • A total of 1482 sewer blockages were monitoring programs form part of our plants in Bendigo, Bridgewater/Inglewood, down from 1718 the previous year. license agreement conditions with the Cohuna, Elmore, Echuca, Heathcote, EPA. No significant environmental • The 745 sewer spillages this year was Lockington, Rochester, Boort and change was observed during the past down on last year’s total of 824. Pyramid Hill. 100% compliance with EPA year on either level or quality through licences was achieved by these plants. the operation of Coliban Water’s assets Water Services Agreement The licences for the water reclamation plants at these sites. Standards that service the towns of Kyneton and • 99.6% of sewer spillages were Castlemaine are held by our partners. contained within 5 hours, an improvement of 1.6% against the target of 98%.

Volumes of Wastewater Treated, Effluent Discharged and Reused. TOWN VOLUME OF SEWAGE VOLUME OF EFFLUENT VOLUME OF EFFLUENT TREATED (ML) DISCHARGED (ML) REUSED (ML) Boort 1 32 0 0 Bendigo 7001 5576 692 Bridgewater/Inglewood 58 0 0 Castlemaine 1083 1048 0 Cohuna 223 0 0 Echuca 1757 0 823 Elmore 40 0 0 Gunbower / Leitchville 1 10 0 0 Heathcote 132 0 87 Kyneton2 749 698 352 Lockington 27 0 0 Pyramid Hill 1 14 0 0 Rochester 308 0 210 Totals 11,434 7,322 2,164

1 New Water Reclamation Plant, operational part year only 2 Lagoons drained during the year OUR FUNCTIONS CONTINUED

WASTEWATER TREATMENT Aggregate Annual Performance of Town or Sewerage Systems TOWN CORPORATE PLAN ACTUAL RESULT %1 VARIANCE % TARGET %1 Bendigo 100 100 0 Bridgewater/Inglewood3 000 Castlemaine2,5 100 96 -4 Cohuna 100 100 0 Echuca4 n/a n/a Elmore3 000 Heathcote 100 100 0 Kyneton2,6 100 88 -12 Lockington3 000 Rochester 100 100 0

1 = Number of individual test results meeting EPA licence conditions / total number of individual tests for the year x 100 2 = EPA licence held by other parties 3 = No discharge during the year 4 = No parameters specified in licence 5 = Eight parameters tested every month. One of these parameters was non-compliant in four months due to high trade waste load. A new pre-treatment system has now been installed to treat the trade wate 6 = Non-compliance attributable to minor plant design fault that has now been remedied and algal growth in the trade waste lagoons prior to land disposal Cleaner Production EPA encourages the concept of "cleaner Short Term/Persistent Compliance with EPA Licence production" in industry across Victoria. The program has demonstrated that TOWN CORPORATE PLAN participating businesses can reduce their 1 1 TARGET % ACTUAL RESULT % VARIANCE % environmental impacts, improve efficiency Bendigo 100 100 0 and save money. Coliban Water invited EPA to talk with our tradewaste Bridgewater/Inglewood3 00 0 customers about the benefits of cleaner Castlemaine2,5 100 67 -33 production, holding information sessions in Bendigo and Echuca during February. Cohuna 100 100 0 The following benefits of cleaner Echuca4 n/a n/a production were presented for discussion: Elmore3 00 0• Improved environmental performance Heathcote 100 100 0 • Reduced occupational health and safety risk Kyneton2,6 100 41 -59 • Financial savings Lockington3 00 0 • Market advantages Rochester 100 100 0 • Development of new product lines 1 = Number of sets of test results meeting EPA licence conditions / total number of sets of routine tests for the year x 100 • Enhanced reputation 2 = EPA licence held by other parties • Better community relationships 3 = No discharge during the year, therefore no testing was undertaken 4 = No parameters specified in licence • More efficient processes 5 = Eight parameters tested every month. One of these parameters was non-compliant in four months due to a high trade waste load. A new pre-treatment system has now been installed to treat the trade waste • Reduced liability and insurance 6 = Non-compliance attributable to a minor plant design fault that has now been remedied and algal premiums growth in the trade waste lagoon prior to land disposal • Improved working environment for staff

24 OUR FUNCTIONS CONTINUED

Wastewater Collection Some of our towns have new sewer systems installed as part of the Envirosafe program and new developments. However other towns have old sewer systems, laid at shallow depth, with rubber ring joined earthenware pipes that allow intrusion by tree roots. In particular these problems are associated with the sewer networks in the more established suburbs of Bendigo, Castlemaine and Kyneton.

Table - Reliability of our Wastewater Collection Service TOWN CORPORATE PLAN ACTUAL RESULT1 VARIANCE % TARGET1 Bendigo 74.1 79.8 7.19 Bridgewater/Inglewood 0 15.1 0 Castlemaine 31.3 32.3 3.2 Cohuna 0 0 0 Echuca 0 0 0 Elmore 0 0 0 Heathcote 0 15.6 0 Kyneton 11.1 25.4 128.8 Lockington 0 0 0 Malmsbury 0 0 0 During the year schemes at Gunbower and Leitchville were completed and construction Rochester 0 0 0 commenced on the Axedale, Wedderburn, Dunolly and Newstead schemes. As at July 1 = Total number of confirmed sewage overflows per 100km of sewer main 2004, Wedderburn was approximately 70% complete, design of the Axedale system was SEWER IMPROVEMENT Kyneton and Castlemaine well underway and both the Newstead and Strategies Dunolly schemes were 95% complete. STRATEGY Consultants have been appointed to assess Water reclamation plants are being Progress on the implementation of the $27m the capacity of the Kyneton and Castlemaine constructed in Axedale, Wedderburn (both Sewer Improvement Strategy this financial sewerage systems to deal with current flows. mechanical plants) and in Dunolly (lagoon year has included: The consultant will formulate a staged based plant) as part of the scheme, while augmentation strategy to deal with current Newstead is being connected via rising main Bendigo Sewer Main Duplication demands and the projected growth of these to the existing plant at Castlemaine. The functional design for the duplication of a towns over the next twenty years. Completion of all schemes is expected by the 3.8km section of the sewer main through end of 2004. the Bendigo CBD is now being discussed with stakeholders. Workshops were held to ENVIROSAFE discuss the need for the work and the Envirosafe is a $44 million program of works BENDIGO BOUNTY impacts of the various routes under aimed at improving local environments The Bendigo Bounty project, launched in consideration. Construction is planned for through the provision of high quality June 2003, had the objective of producing a 2005/06. sewerage reticulation, treatment, disposal master plan for the sustainable use of and reuse systems for 20 country towns in reclaimed water in the Bendigo area. Echuca Sewerage Augmentation the Coliban Water region. The project identified that reclaimed water Following the development of the Echuca In previous years, schemes at Maldon, from Coliban Water’s Bendigo Water sewerage augmentation strategy, detailed Inglewood, Bridgewater, Marong, Huntly Reclamation Plant and ground water from investigations have commenced for Stage 1 (and part of Epsom), two areas of Echuca, Bendigo Mining’s planned mining operations works. Trentham, Tylden, Chewton, Campbells provided a significant water resource for Creek, Harcourt, Pyramid Hill and Boort were substitution for existing potable uses. completed. Further investigation will proceed over the coming year on the recommended options.

Coliban Water Annual Report 2004 25 OUR FUNCTIONS CONTINUED

RECLAIMED WATERS Castlemaine Water Bendigo Water Reclamation Plant Reclamation Plant The possibility of supplying Class A AND BIOSOLIDS An extensive period of planning has resulted reclaimed water to residential areas via Campaspe Water Reclamation in an agreement with the Castlemaine Golf a dual reticulation system was examined closely this year. The development of several Project Club to re-use 160 ML of treated wastewater from the Castlemaine Water residential estates close to the plant A new $40 million water reclamation plant Reclamation Plant each year. A pumping presented an opportunity for a new type of to service Echuca is being constructed under station and a 5km pipeline will be built to service for Coliban Water. After the a Partnerships Victoria arrangement. The convey the reclaimed water from the plant to application of triple bottom line principles it plant is being constructed by EarthTech and the 105 year old golf course. The provision was concluded that the timing and size of will be owned and operated by them for 25 of reclaimed water will allow the golf course the residential development rendered the years before transferring back to Coliban to drought-proof its business in being able proposal unviable. An investigation into the Water. to offer a year-round quality golfing facility. future potential of installing dual reticulation Commissioning of the treatment facility It is anticipated that the $600,000 re-use to other developing areas is continuing. scheme will be complete in early 2005. commenced in mid 2004 and is expected to The Bendigo Bounty project has also be complete in late September 2004. highlighted a number of prospects for Kyneton Water Reclamation Plant The new water reclamation plant provides beneficial reuse of water from the additional capacity and overcomes Construction of a pipeline from the Kyneton reclamation plant. The project will lead environmental problems experienced with Water Reclamation Plant to the Kyneton to further community consultation and the former lagoon-style treatment plants in Racecourse commenced in January 2004. refinement of options that could enable Echuca - including odour, unsustainable A 40ML dam is being built at the racecourse reclaimed water from Coliban Water’s plant irrigation and groundwater seepage. to store reclaimed water during winter to be and from the operations of Bendigo Mining used for irrigating the racecourse over to replace water currently diverted from Following completion, treated wastewater summer. The project is being financed by the rivers for irrigation and potable use. produced will be recycled to provide Kyneton District Racing Club, Country Racing supplementary irrigation to farmland Victoria and Coliban Water. Investigations between Echuca and Rochester. into further use of reclaimed water for The second phase of the project, which irrigation of farm land and sporting facilities involves the construction of a 30km pipeline in the district as well as environmental to transport wastewater from Rochester flows are continuing. to the new plant, will be undertaken in five years. OUR FUNCTIONS CONTINUED

Use of Reclaimed Waters and Wastewater Effluent Reused to Land Sludge (Biosolids) TOWN CORPORATE ACTUAL RESULT %1 VARIANCE % This year saw the signing of six short-term 1 agreements for the use of reclaimed water. PLAN TARGET % These agreements allowed the beneficial Bendigo 16 10 -6 reuse of reclaimed water for purposes such Bridgewater/Inglewood 0 0 0 as dust suppression associated with road- making and sports ground irrigation. Castlemaine 0 0 0 Cohuna 0 0 0 Biosolids Management Plans Echuca 51 47 -4 Biosolids are commonly known as treated or stabilised sewage sludge, produced as Elmore 0 0 0 a normal by-product of the biological Heathcote 62 66 4 treatment of sewage at each of our water reclamation plants. In our efforts to be more Kyneton 43 50 7 efficient with our resource use, Coliban Water recognises the potential value of Lockington 0 0 0 re-using and recycling treated effluent Rochester 89 68 -21 and biosolids. 1 = volume effluent reused/total volume of effluent produced x 100 Regulatory mechanisms have now been developed which encourage the beneficial use of biosolids through application to agricultural lands and through our private sector partnerships, we seek to identify and Discharge of Treated Effluent to Waterways develop opportunities for reuse and recycling. A Sewage Sludge Management PLANT DISCHARGE TO WATERWAYS Plan was developed during the year to Bendigo Water Reclamation Plant 4,884 ML to Bendigo Creek ensure that any potential risks associated with this reuse and recycling are Castlemaine Water Reclamation Plant 1,048 ML to Campbells Creek appropriately managed. During the plan’s Kyneton Water Reclamation Plant 346 ML to Campaspe River development, the treatment process for each water reclamation plant was reviewed along with the current sludge management processes. This risk assessment found that each of our water reclamation plants exhibits only a minimal or low risk to the Wastewater Sludge Reused/Recycled environment. Appropriate plans were TOWN CORPORATE PLAN ACTUAL RESULT %1 VARIANCE developed for each plant that took these TARGET %1 environmental risks into account as well as social and economical issues of viability Bendigo 100 97 -3 from both Coliban Water and the end Bridgewater/Inglewood 0 0 0 user’s perspective. Castlemaine 100 100 0 Cohuna 0 0 0 Echuca 0 0 0 Elmore 0 0 0 Heathcote 0 0 0 Kyneton 2 0 100 100 Lockington 0 0 0 Rochester 0 0 0

1 = volume sludge reused/total volume of sludge x 100 2 = Kyneton lagoons were de-sludged during the year clearing approximately 20 years of sludge

Coliban Water Annual Report 2004 27 ENVIRONMENTAL PERFORMANCE

Coliban Water has continued working It also enables us to identify and better There are procedures and management plans throughout the past year to contribute to manage incidents such as pollution and in place within each area to address issues environmental sustainability, particularly environmental damage. and minimise environmental risk. through our active program of improving Environmental Aspects form the basic One key procedure is the formal and extending sewerage services to protect building blocks of our EMS. The eight environmental auditing of Coliban Water’s the quality of water in rivers and streams as Environmental Aspects cover key activity major facilities each year. This year the well as our precious groundwater resources. areas each having potential environmental Korong Vale and Serpentine water treatment Coliban Water recognises environmental impacts: plants and Cohuna water reclamation plant management as a fundamental part of the were audited. The audits revealed some • Water harvesting and storage business and has continued to implement an minor non-compliance issues. Most were Environmental Management System as the • Water treatment and distribution addressed by the subsequent OH&S audits of mechanism to consider how we impact upon all water treatment plants, resulting works • Conservation and catchment living, natural ecosystems. Coliban Water’s and implementation of recommended management Environmental Policy underpins the business actions for Cohuna water reclamation plant. focus on environmental sustainability. • Wastewater treatment and disposal An additional procedure was developed • Wastewater transfer during the year that relates to the Facilities Environmental Management and Land Management activity of the EMS. • Infrastructure and construction projects System Existing procedures already describe the Coliban Water’s Environmental Management • Facilities and land management need to carry out a preliminary System (EMS) was introduced in 2001 to environmental assessment for all the provide procedures and information on the • Trade waste activities, products and services delivered by potential impacts of Coliban Water’s Coliban Water. activities on the environment.

28 ENVIRONMENTAL PERFORMANCE CONTINUED

It was found that this does not give sufficient guidance on purchasing office equipment that Actions Being Considered for can contribute to a more ‘environmentally friendly’ office. As a result, the Green Office Guide, 2004/05: a joint initiative of Commonwealth, State and Territory agencies, has been incorporated into the • Completing aeration control and motor EMS to guide such purchases in the future. selection program projects The Blue Green Algae Management and Response Plan was reviewed and updated during the • Investigating alternative water source for year. The development of the plan was first initiated through an Environmental Management scum pits, which will be part of a Plan in the business activity area of Water Harvesting and Storage. The Plan aims to decrease reviewed onsite reuse scheme the frequency and intensity of Blue Green Algae blooms in Coliban Water assets. In the event of a bloom, the plan provides for an appropriate and managed response in the interests of the • Investigating feasibility of monitoring surrounding environment and community. and recording greenhouse gas emissions due to incoming wastewater and the Internal reviews of the EMS have highlighted the need to accredit against the Australian treatment process Standard AS 14001. A process was developed to initiate an integrated quality system across the business that will be undertaken over the coming year. This will include our existing Quality • Implementation of a recycling program Assurance System, Safety Map, as well as the Environmental Management System and will for the office at the site result in their accreditation against Australian Standards. The implementation of the State Environment Protection Policy - Air Quality Management A SUSTAINABLE WATER AND WASTEWATER SERVICE by the Environment Protection Authority (EPA) saw further drivers for industry to PROVIDER manage greenhouse gas emissions. This further complimented the first two goals of Water for the Future the Victorian Greenhouse Strategy that aims; A number of water reform initiatives were released over the past year that Coliban Water has to build awareness and understanding of reviewed and considered, particularly in relation to our interaction with the natural greenhouse issues, limit greenhouse gas environment. We provided comment on the Victorian Government’s Green Paper, showing emissions, and enhance greenhouse sinks. complex relationships existing between the rivers, streams, lakes, floodplains, wetlands and Coliban Water was required to carry out groundwaters of our natural water systems and our storages, water supply networks, energy audits on our EPA-licensed Bendigo stormwater drainage networks and sewerage systems. Recognition of Coliban Water’s integral and Heathcote water reclamation plants. role in these systems resulted in a new position of Manager Catchment and Environment being The audit revealed that the previous works created to focus on more closely aligning business operations with the environmental needs carried out at Bendigo due to the within our catchments. Greenhouse Challenge, had gone a long The State Environment Protection Policy ‘Waters of Victoria’ sets the framework for government way to reducing energy usage at the plant, agencies, businesses and the community to work together, to protect and rehabilitate Victoria's with only a few minor recommendations surface water environments. The Waters of Victoria policy was updated in June 2003 and now being made. The audit also highlighted reflects current scientific approaches and Victoria's catchment management arrangements. the need for an overarching energy Over the past year, Coliban Water has incorporated the intentions of this policy into management policy. organisational responses to council planning applications and proposals for rezoning and in working with the North Central Catchment Management Authority on risk-based assessment of ecosystem protection in ambient waters influenced by our water reclamation plants.

Energy Use and Greenhouse Gas Emission Management Coliban Water is a significant consumer of electricity, with the majority of pumps, motors and treatment plants using it as the primary source of power. Coliban Water has taken up the Greenhouse Challenge and each year, must report on energy usage and energy reduction initiatives at the Bendigo Water Reclamation Plant. This year’s report revealed some more opportunities for energy saving at the site as well as confirming the results of implementing recommendations from last year.

ACTION COMPLETE ESTIMATED ANNUAL CO2 EQUIVALENT SAVINGS Install a demand management system ✓ - Install power factor correction equipment ✓ 273 Investigate improvements to aerator ✓ 587 control scheme Initiate motor selection program ✓ 147

Greenhouse gas emissions are usually expressed as CO 2 equivalents in tonnes.

Coliban Water Annual Report 2004 29 Other Emissions Biodiversity Conservation The past year has seen the continued use of The National Pollutant Inventory is a ‘Biodiversity is a scientific, cultural, spiritual and our Biodiversity Action Plan to prevent works reporting database for all industry across economic inheritance that is distinctly ours, and impacting upon the Register of threatened Australia that emits certain substances to is one that we must conserve and manage for species as well as to ensure the integration the air, land and water sectors. Depending future generations’. Our Living Wealth’, of biodiversity conservation principles into on the level of emissions of each substance, Victoria’s Biodiversity Strategy the following water authority activities: reporting may be required. The types of Coliban Water manages approximately 5700 • Capital works emissions that Coliban Water report are hectares of land across the north central ammonia, total nitrogen and total • Planning Approvals region. Many of our activities and phosphorus emissions to air, land and water operations associated with managing this • Project investigations as a result of wastewater treatment. land and providing the necessary water, Electricity consumption is also reported. • Community engagement activities such wastewater and re-use services have the as Waterwatch and the Smart Gardens Total fuel used by Coliban Water vehicles for potential to impact on biodiversity. competition 2003-2004 was 60,957 litres for a total of Coliban Water developed a Biodiversity 16 cars. Average fuel usage was 11.66 litres • Operation of Coliban Water plants Action Plan in late 2002 with the aim of per 100km. creating awareness throughout the business The implementation of our Environmental of the need to protect flora and fauna, with Management System facilitated the consideration of biodiversity conservation A Greener Office particular attention paid to those species principles into the internal planning Coliban Water embarked upon a new that are threatened or endangered by the framework. initiative during the year to improve the impacts of our works. sustainability of work practices within The Action Plan is consistent with the Coliban Water undertook several partnership our ‘own backyard’. outcomes sought through Victoria’s projects during 2003/04 in support of rural landholders and communities in conserving A program was developed to minimise Biodiversity Strategy and is in accordance biodiversity. These works were also waste, improve our energy efficiency and with the Water Services Agreement consistent with the objectives of the draft conserve water in the main office in requirements. Regional River Health Strategy. Continued Bridge Street, Bendigo. A Biodiversity Register was also developed support was provided for the Friends of A waste audit was undertaken, and at this time and remained current for the Campbells Creek in their effort to enhance targets developed by staff at Coliban past year, containing the location of a native, riparian vegetation through a five Water and our partner CAMS. The number of endangered or threatened species year rehabilitation program for Campbells launch and program implementation known to inhabit land owned by Coliban Creek in Castlemaine. will occur during the 2004-2005 Water. The Register contains 14 rare or We supported landholders adjoining the financial year. threatened species of flora and 31 rare or threatened species of fauna. three Upper Coliban storages in their weed control efforts to help establish native vegetation. Coliban Water worked with VRFish to undertake habitat enhancement works in Barkers Creek Reservoir. Fallen timber found ‘hung up’ in trees around the reservoir was placed below the full supply level to create additional habitat and protection for fish and other species in the reservoir. Willow removal works on the Coliban River were undertaken in partnership with the North Central Catchment Management Authority during 2003 in line with the recommendations in the Malmsbury Urban Design Framework. The willows were removed in early July and follow up weed control during the year marked the start of an 18-month enhancement program to revegetate and enhance the existing riparian corridor downstream of the Malmsbury Reservoir. ENVIRONMENTAL PERFORMANCE CONTINUED

Chemical Use Partnership Delivering Regional • Establish current knowledge base within An annual review of chemical handling Natural Resource Management both organisations with respect to what procedures for the business has recognised Priorities data sets each business holds, the status that the current quality and environmental A strong partnership was forged during the of relevant strategies and plans and management systems sufficiently cover the year between Coliban Water and the North current projects/activities where there processes required to eliminate where Central Catchment Management Authority. may be joint interest. possible, or minimise off-site impacts of The Regional Catchment Strategy (RCS) was • Enable data sharing for relevant using chemicals. In line with the increased released by the NCCMA in late 2003, catchment based information between accountability for Water Authorities in marking the culmination of a lengthy period organisations. protecting water supplies at source and of region-wide stakeholder involvement to ensuring multiple barriers for the protection develop the priorities for natural resource • Regular, ongoing communication of water quality, the review has identified management in the north central region. between organisations on issues and the need for some additional risk Coliban Water participated as a stakeholder current activities as well as trying to management procedures to be developed for in the development of the RCS. have a coordinated approach to liaising the three upper Coliban storages. with stakeholders. Organisational policy and strategies have Procedures will need to be developed for • Together, plan for and develop a herbicide use in land management adjacent been considered in light of the released RCS and were reviewed and amended as partnership project in the upper Coliban to storages and as well as formal hazardous system to address key catchment substances and dangerous goods risk required to ensure alignment with regional priorities and the strategic objectives. management issues affecting water assessments and registers. quality and river health. Coliban Water was represented on the Steering Committee for the development of • Review links between organisations on the Regional River Health Strategy, one of climate change issues and information the key documents that will underpin the needs in readiness for any potential strategic objectives for river health in collaboration with the North Central the RCS. Greenhouse Alliance and the CMA-led Australian Greenhouse Office project. In facilitating a strategic alliance between both organisations, a commitment was forged Environmental Incidents early in 2004 to undertake several activities to No Penalty Infringement Notices or assist Coliban Water to contribute to the RCS Prosecutions were issued to Coliban Water outcomes in coming years: during the year. SOCIAL SUSTAINABILITY

COMMUNITY SERVICE Sponsorship CUSTOMER FEEDBACK Coliban Water continued its program of OBLIGATIONS supporting community groups and events Focus Groups and Customer Corporate Citizenship through sponsorship, including: Consultation Processes Effective and regular two-way • Coliban Water Smart Gardens Information from focus group meetings and communication with customers is essential Competition other forms of consultation is fed back into for Coliban Water to ensure that: the planning for provision of services. • Coliban Water Day at the Lake Customers have: (Bendigo Easter Fair) • Three focus groups on Water Restrictions By Laws were held during the year in • appropriate levels of information about • Castlemaine State Festival Castlemaine, Bendigo and Echuca the services provided • Coliban Water’s Jazz on High at Echuca’s • Five focus groups were held with • opportunity to request more information Riverboats, Jazz Food & Wine Festival customers to understand their if particularly interested in a topic • Bendigo Goldfields Chrysanthemum expectations of service delivery and view • input into decisions that have a direct Championship on key strategic issues. These occurred impact on them in Castlemaine, Wedderburn, Echuca and Public Education two sessions in Bendigo Coliban Water is able to: Our schools education program helped Regular briefings, presentations or • provide services that meet the needs of teachers from primary to tertiary level deal distribution of information to stakeholders customers with the subject of water in the curriculum such as Council staff, individuals or groups of customers is undertaken on specific issues • inform customers of improvements by conducting and hosting professional or projects. made and the results of investments development sessions as well as providing on their behalf speakers for school visits. Topics relating to the water cycle such as water harvesting, Customer Charter • identify emerging issues and manage treatment and distribution, water restrictions Coliban Water has a Customer Charter in them effectively and security, water quality and water place for urban and supply by agreement • obtain appropriate customer information reclamation are included on the Coliban customers. This underwent substantial and use it in decision making Water website as well as in resources and revision in 2003, and sets out rights and activities available to schools. Tours of responsibilities of both Coliban Water and We communicate with customers through facilities have been conducted for tertiary our customers in relation to the supply of a variety of means including consultative groups. Coliban Water is also a sponsor of water and wastewater services. A summary workshops and forums such as the Rural the North Central Waterwatch – a version of this Charter is sent to all new Customer Advisory Group, the Youth Advisory community water quality monitoring urban and supply by agreement customers. Council and forums or focus groups program administered by the North Central discussing issues of specific interest such Catchment Management Authority, which The Essential Services Commission has as service levels or water restrictions. An includes the schools "River Detectives" produced a "Customer Service Code" in extensive market research program helps project. early 2004, which will require a further to build knowledge of our customer base review of our "Urban and Supply by including an annual Customer Satisfaction The alliance of Coliban Water, the City of Agreement Customer Charter" before the Survey, Customer Contact Survey and other Greater Bendigo and the Department of end of June 2005 to ensure compliance. smaller surveys. We maintain a high profile Primary Industries continued to educate and community education program combining raise community awareness about the a schools program, community workshops importance of good garden design and and displays at key community events. water efficiency principles through the In addition Coliban Water maintains a range Coliban Water Smart Gardens Initiative. of brochures and other information on the Through this program local horticultural website. Our program of speakers and experts have presented a series of practical facility tours for specialist groups also helps workshops to assist owners of new or to build awareness and knowledge about established gardens to better create efficient customer issues and water supply and easy to maintain gardens. The extent to management. which the workshops have been embraced by the public is a clear indication of the need for a level of information not previously Multicultural Communications available to customers. The seminars have Coliban Water notes the importance of been over subscribed and additional delivering culturally appropriate services and seminars are being organised to meet believes its service and customer community demand. In addition, workshop communications reflect the cultural needs notes have been developed into a booklet and expectations of its customers. "Smart Gardens For Dry Times" copies of which are available through offices of participating organisations.

32 SOCIAL SUSTAINABILITY CONTINUED

Rural Customer Charter STAKEHOLDER Meeting four times per year participants Coliban Water also has a Customer Charter update the group on current projects, share in place which serves rural water supply ENGAGEMENT ideas and initiate collaborative projects. The network has proved to be a valuable customers, and again sets out rights and Youth Advisory Council responsibilities of both Coliban Water and regional professional development forum as our customers in relation to the supply of The Youth Advisory Council, established with well as providing opportunities for Coliban untreated rural water. This Charter was the assistance of Lead On, is a new initiative Water to participate in and support events produced and distributed to all rural to provide a youth perspective on water and projects such as "Snapshot of a Region" customers for the first time in 2003. All issues. The Council consists of photographic competition, North Central new rural customers receive a copy of this representatives from seven secondary Natural Resource Management Recognition Charter with their licence documentation. schools in Bendigo and Castlemaine. This Event and schools environment days. forum has provided the opportunity for The Essential Services Commission is in the fifteen Year 10 and 12 students to learn Water Educators Network process of developing a "Rural Customer about the water industry, practise meeting An initiative of VicWater this network brings Service Code", which will also require a procedure and interact with staff from together from water authorities around the review of our "Rural Customer Charter" Coliban Water. The group has identified and state staff who have a community education before the end of June 2005, to ensure discussed issues relating to water restrictions role. In an area of the business, where there compliance. and the environment during the meetings are not many professional development held to date. In addition volunteers from the opportunities, particularly relating to schools YAC along with some of their friends Rural Customer Advisory Group education, the network allows a sharing of assisted Coliban Water during the Bendigo The Rural Customer Advisory Group (CAG) experiences and ideas among peers and the Easter Festival at the Coliban Water "Day at met six times during the year. Membership chance to learn from educators in related the Lake", engaging the public by is by invitation, based on a random sample fields. VicWater also informs members of the distributing promotional material, assisting of rural customers. In December, the final group about relevant seminars, information stage performers and conducing a market meeting of the original group was held sessions and conferences relevant to the survey. (commenced March 2002). education role. This year the metropolitan water authorities have developed a generic During February and March briefing sessions Customer Consultative Group were held with seven new CAG members, curriculum resource for schools. A group of A decision was made during the year to who have a 24-month commission. Three representatives from water authorities, establish a Customer Consultative Group to members of the first group remained on the including Coliban Water, are currently provide advice to Coliban Water on customer CAG as transitional members, with a working towards a rollout of this resource issues and major initiatives to ensure a 12-month commission. The intent is to to regional schools. balance between technical and financial refresh some of the membership turnover considerations and customer expectations. During May this year Coliban Water and the every 12 months, whilst still retaining North Central Catchment Management expertise within the group. The first Natural Resource Managers Authority co-hosted meetings of the meeting of the new group was held National Water Week organising committee Communicators Network in March. and the Water Educators Network over two This group, coordinated by NCCMA and DPI, Key achievements of the group include: days in Bendigo. In addition to the meetings is an informal network of government the itinerary included a tour of the Bendigo • raising the profile of rural customers as agency, local government and water Water Reclamation Plant, Bendigo Creek a segment within the business authority staff involved in public relations, tour of sites illustrating human impacts and community capacity building, education and • gaining a better understanding by a demonstration of the Discovery Science marketing with their respective and Technology Centre Water Show to Coliban Water of who our rural organisations. customers are, how they use water, and students of Camp Hill Primary School. what their key issues are • providing rural customers with a ‘voice’ within the business planning processes • providing a means of communicating with rural customers on key issues unique to the rural system During the year, the CAG made significant contributions to our planning for a limited rural season and our business response to the Green Paper. Two editions of a rural customer's newsletter - "The Rural Channel" (a new initiative) - were distributed during the year. It is intended to continue with distribution on a twice-yearly basis. SOCIAL SUSTAINABILITY CONTINUED

Consultation with Aboriginal Groups PROJECT NAME DESCRIPTION GROUP CONSULTED COMPANY Envirosafe - Dunolly Dunolly WRP and Outfall Pipeline Ballarat and District Clarkeology and Newstead Aboriginal Co-op Newstead Outfall Pipeline Jarra Aboriginal Clarkeology Loddon river Crossing Association Epsom - Huntly Water Epsom - Huntly Water Jarra Aboriginal Association Main Augmentation Main Augmentation Heathcote to Tooborac Pipeline Design and construction of a Jarra Aboriginal Association Clarkeology water transfer main from Heathcote to Tooborac Kyneton Racecourse Pipeline from Kyneton WRP to Jarra Aboriginal Association Clarkeology Waste Water Re-Use Project racecourse and construction of dam

CUSTOMER COMPLAINTS Energy and Water Ombudsman of Victoria EWOV received seven new cases for Customer Complaints Performance Indicators investigation concerning Coliban Water during the year, down from 11 the previous CUSTOMER SERVICE CORPORATE PLAN ACTUAL VARIANCE% year. Cases covered a broad range of topics TARGET 2003/04 including rural system delivery and billing; Water Quality Complaints 6 4.4 -26.7 augmentation charges; debt collection; Per 1000 Customers provision of potable water; low pressure due to galvanised service pipes; and access Water Supply Complaints 83.6 22.8 -72.7 charges. Per 1000 Customers In addition, following lengthy discussion and Sewer Service Complaints 40.6 18 -55.7 negotiation with EWOV's Complex Case Per 1000 Customers Manager, a number of long-standing cases Affordability Complaints 21.4 8.0 -62.6 were closed. In most cases, they were Per 1000 Customers resolved "No Further Investigation" following Coliban Water’s making an offer All Other Complaints 11.3 8.2 -27.4 deemed reasonable by EWOV which the Per 1000 Customers customer was not prepared to accept.

Annual Customer Satisfaction Survey

% Overall 95 100 92 88 89 91 80

60 47 38 41 42 42 40 20 0 1999 2000 2001 2002 2003

Extremely Satisfied Satisfied

34 SOCIAL SUSTAINABILITY CONTINUED

MANAGEMENT OF SOCIAL AND ECONOMIC OBLIGATIONS Coliban Water Enterprise Agreement Our Staff Negotiations commenced during the year with the Enterprise Agreement Negotiating As at 30 June 2004 Coliban Water employed 61 permanent staff members. Employee turnover Committee comprised of staff and union rate in 2003/04 was18%, up from 9% the previous year. representatives. The purpose was to establish a new three year Enterprise Profile of Coliban Water staff by function Agreement with staff. Whilst the negotiations were not concluded during the 2003/04 2002/03 2001/02 financial year, the process continued in a Chief Executive 3 3 2 constructive manner with resolution of Business Services 7 8 7 outstanding issues to be completed in the new financial year. Operations, Headworks, Projects 19 20 19 Retail & Administration 20 19 19 Staff Recognition Planning 12 11 8 An important objective for Coliban Water is to be an Employer of Choice. Staff are Total 61 61 55 recognised in a variety of ways throughout the organisation. The Performance Appraisal process introduced into Coliban Water during the year encourages a process of regular Profile of Coliban Water staff by gender and employment type feedback between managers and their staff, NUMBER OF EMPLOYEES NUMBER OF EMPLOYEES encouraging a process of teamwork, AS AT 30 JUNE 2004 AS AT 30 JUNE 2003 coaching and recognition of achievement. Recognition of staff is also achieved through Full time employment 56 55 internal communications including staff Part time employment 5 6 briefings, the weekly Chief Executive Bulletins, the SELECT program and other Permanent employment 61 61 celebratory events when key milestones are Casual and temporary employment 1 1 achieved. Female 22 20 Training and Development Male 39 41 Training and development is an important Staff diversity not captured not captured focus for our staff. All Performance Agreements contain a core section where Full time equivalent number of staff (FTE) 58.9 58.7 Learning and Development priorities are developed for the year and against which the Employment Practices achievement of objectives will be monitored. Coliban Water continues to subscribe to the priciples of merit and equity, as evidenced through Training and Development activities cover a our application of policies and business conduct in relation to equal employment opportunity, wide range of activities including specifically sexual harassment, rehabilitation, training and external study. Our code of conduct outlines targeted training courses of a short or more acceptable behaviour in relation to business ethics, solicitation of rewards, conflict of interest extended range; conferences and and external work. These elements have been built into our induction and performance professional activities; committee and project assessment programs. experience within the organisation, at an industry level or regional organisations and The Human Resources Manual was revised and updated during the year including EEO policies. events. In addition, subscriptions to a wide All staff were briefed and the Manual made available to all on the intranet. range of professional journals and electronic readings is encouraged to maintain and build Employee Consultation the knowledge of employees. Coliban Water involves staff at a variety of levels. Staffs at all levels were involved in the Strategic Planning process throughout the year, helping to shape the "Securing Our Water Training totalling 1443 hours has been Future" strategic direction. An employee committee which involves representatives from each undertaken during the year. As recording of work area is consulted about work practices and programmes including the development of the training hours commenced after the start of new Performance Appraisal Process. The SELECT Committee continues to develop programs the year, this figure does not reflect the true and initiatives for staff across the six dimensions of Personal Development, Professional amount of training undertaken by staff. Development, Health and Fitness, Work Environment, Social and Work Life Balance. A major staff initiative was the launch of the ‘Fit4Life’ program with 44 staff members participating in an integrated heath and fitness program.

Coliban Water Annual Report 2004 35 SOCIAL SUSTAINABILITY CONTINUED

Occupational Health and Safety Advertising Policy Our Occupational Health and Safety is currently based on the SafetyMap system. In 2004 a We comply with requirements to insert decision was taken to seek certification of our Occupational Health and Safety Framework to official notifications and tenders where AS4801. Our aim it to attain this by the end of calendar year 2005. required. Broad scale advertising for general announcement or community education The OH&S committee actively supported Safety Week by arranging events each day designed to purposes is undertaken where appropriate. promote an awareness of occupational health and safety. Events included presentations on However, the preference is to send targeted workplace bullying, contract management and a social ride to work and healthy breakfast. information directly to customers wherever possible. Practices for Recording and Notification of Occupational Accidents and Disease: 2003/04 2002/03 Reportable incidents 0 2 Workers compensation claims 2 2 Injury resulting in days lost 1 1 Lost time due to injuries 16 hours 413.5 hours Days lost per employee 0.03 0.75 OUR ORGANISATION

OUR GUIDING POLICIES Voluntary Economic, Environmental Topics covered include: and Social Charters Supporting our strategic plan are a number • Bulk Services Code of policies that ensure the day to day • Coliban Water is a member of the • Approach to Pricing running of our business complies with both Greenhouse Challenge Program, a regulatory and community expectations. voluntary Commonwealth Government • Demand Forecasting program aimed at reducing greenhouse • Customer Service Code Environmental Policy gas emissions from industry (see page 47). Coliban Water’s Employment Policy is • Performance Reporting Framework designed to comply with AS 14001 and we • We follow the guidelines of the • Service Standards and Incentive are working towards certification in the Australian National Committee on Mechanisms coming year. Large Dams. • Estimating of a Return on and of Capital Investments, and Emergency Management and REGULATION Response Plan • Guidelines for Information Templates Our Emergency Management and Response On 1 January 2004, Coliban Water became The approach by the ESC to a number of Plan was revised during the year. We an entity regulated by the Essential Services issues has seen Coliban Water combine with conducted a desktop training exercisein Commission. the Regional Industry to provide detailed conjunction with the State Emergency While there has been no immediate impact responses to these issues. Service to test the plan. We will build on of regulation on Coliban Water, a significant lessons learned by holding further training amount of preparation for the submission of Detailed papers were produced on the exercises over the coming year. the Water Plan, due on 1 September 2004, Regulatory Treatment of Risks and an was completed during the year. alternative approach to the assessment of Occupational Health and Safety Developer Charges. The ESC has responded The Water Plan is the core document that Policy to the concerns raised in the risk report, sets out the pricing submission by each Regular training in Occupational Health and while the report on Developer Charges business based on the levels of service to be remains in discussion. Safety continues to be provided to staff and provided to its customers. The plan links contractors. In the past year this has outcomes of service delivery to inputs Coliban was also represented on the ESC included training on asbestos awareness and (operating and capital expenditure), together Working Group that developed the Occupational Health and Safety induction with expected and appropriate returns on Performance Reporting regime. training that has seen many of our staff investment to the proposed price path. accredited with the nationally recognised Coliban submitted its draft Water Plan, as training card known as the "Red Card". The Essential Services Commission has required, on 1 July 2004. actively involved the industry through the Risk Management Policy preparation of papers and subsequent meetings to discuss the outcomes of these To ensure the sustainability of the business papers targeted towards the final completion and service delivery Coliban Water has of Water Plans with the appropriate level of developed a Risk Management Framework information. based on AS/NZS 4360:1999. This framework is used to identify both strategic and operational risks within a Strategic Risk Profile of nine risk categories. The profile is reviewed and updated every six months with biennial auditing of our risk management processes by our independent internal auditors AFS & Associates Pty Ltd. Developments and updates to the standard are monitored to ensure our Risk Management Framework remains current.

Coliban Water Annual Report 2004 37 OUR ORGANISATION CONTINUED

CORPORATE GOVERNANCE It is also responsible for remuneration and Jennifer Dawson, BBus, CISA, MAICD establishment of policies and procedures to Ms Dawson has extensive experience in the The Board ensure Coliban Water satisfies all its legal accounting and auditing field, leading The Board of Coliban Water comprises seven and ethical responsibilities. Bendigo Bank’s Internal Audit Group until her appointment as a non-executive Director non-executive Directors including the The Board meets monthly on a formal basis of Bendigo Bank Limited in 1999. Ms Chairman. They are appointed on the basis with an additional "Directors discussion Dawson has had 10 years experience with of their skills by the Minister for Water, meeting" each month to discuss specific an international accounting firm, is a the Hon. John Thwaites. issues and projects on an informal basis. Director of the Consumer Utilities Advocacy The obligations of Coliban Water to the Centre, and a member of the State Minister were formalised in the Water Board Members Government Regional Development Advisory Services Agreement that was signed on Gordon McKern, FAICD, AASA, AFAIM Committee. She was appointed to the Board 28 August 2001 and runs for three years. Chairman in October 2001. Obligations covered under the Agreement Mr McKern has been Chairman of Coliban are categorised as: Water since January 1994. He is also Shelley McGuinness, BAgSci(Hons), • Service Obligations encompassing the Chairman of McKern Building Products Pty MAICD agreed standards to be achieved for the Ltd, Envirozel Ltd, the Regional Advisory Ms McGuinness was appointed to the Board operating activities of the Authority. Board of LaTrobe University Bendigo and a in October 2001. She has over nine years Many of the obligations of the Director of the Bendigo Art Gallery. experience in the Department of Natural Memorandum of Understanding signed Resources and Environment, including with the State Government in 1997 Noel Harvey, OAM, MIPA, MAICD - catchment management, legislation and have been brought in to the Water Deputy Chairman policy development and research in salinity Services Agreement as service Appointed to the Board in October 2001, and soil erosion. Ms McGuinness is currently obligations. Mr Harvey has been involved in local a Director of RMCG providing strategic government in and around the Macedon planning services in natural resource • Accountability Obligations covering Ranges since 1991, including Chief management. standards that are set for effective Commissioner of the Shire of Hepburn, corporate governance and as required President of the Shire of Kyneton and twice Fabian Reid, MAICD for compliance audits, compliance with Mayor of the Shire of Macedon Ranges. A former teacher and senior advisor to the laws and corporate planning and price Mr Harvey is a Board Member of the North Premier of Victoria, Mr Reid manages a determination processes. Central Catchment Management Authority training and environmental management • Reporting Obligations under which and Chairman of the Victorian Mineral Water services company in Bendigo. Appointed to Coliban Water has committed to a Committee. He also has extensive the Board in October 2001, he is also on the regular reporting schedule, including experience in travel, transport and the Board of Management of the Golden Dragon performance measurement targets. tourism industries. Museum and the Regional Advisory Board of LaTrobe University Bendigo. As at 28 July 2004 the Water Services Patricia Cotton, MAICD Agreement has been replaced by a Appointed to the Board in July 1998, Keith Rowland, MAICD Statement of Obligations. This can be found Mrs Cotton is a former Councillor and twice A motelier in Echuca for ten years, Mr at our website www.coliban.com.au. Mayor of the City of Waverley, and a former Rowland was appointed to the Board in The Board is responsible for the overall Commissioner of the City of Knox. January 1995. He is also a Director of corporate governance of Coliban Water. This Mrs Cotton is currently Chair of the Bendigo Landrow Properties, with extensive involves establishment and monitoring of and Central Victoria Community Foundation, experience in agriculture, marketing corporate strategies, objectives and targets, and a Board member of Discovery Science and property. implementation of appropriate monitoring and Technology Centre and Peter Harcourt and reporting systems to identify and Disability Services. manage business risk, assessment and review of senior executive performance.

38 From left: Noel Harvey, Pat Cotton, Gordon McKern, Fabian Reid, Shelly McGuinness, Keith Rowland, Jenny Dawson.

COMMITTEES OF THE in place to identify, evaluate and manage all It primarily focuses on senior executive business, financial, occupational health and remuneration and performance but also BOARD safety and environmental risks. It monitors considers the business’ overall approach to the effective integration of Coliban Water’s remuneration, current employment practices Audit Committee risk management framework and ensures and compliance. The Audit Committee meets quarterly and at the existence of planned strategies for Although the Committee for all meetings other times as required. The Committee is dealing with major emergencies likely to: responsible for appointing and monitoring conducted during 2003/04 comprised the performance of the internal auditor, for • Affect large numbers of customers or Keith Rowland (Chairperson), Fabian Reid reviewing and approving audit programs and sections of the community; and Shelly McGuinness, since 22 April 2004 the two Directors currently appointed are for evaluating the adequacy and • Significantly impact on the environment; Gordon McKern (Chairperson) and Keith effectiveness of Coliban Water’s or administrative, operating and accounting Rowland with one other Director nominated policies and controls. Three Directors are • Markedly restrict the service provided on an ad-hoc basis. by the business. appointed to the Committee - Jennifer The Committee met three times during Dawson (Chairperson), Patricia Cotton and All Board Directors are members of the 2003/04. Noel Harvey. The Committee met four times Committee with Noel Harvey as Chairperson. during 2003-04. All members of the Audit Customer Service Committee Commitee are independant. The Committee met once during 2003/04. This Committee was disbanded on 22 April Executive Management Review 2004 and did not meet during 2003/04. Risk/Environment Committee Customer service issues are generally Committee The Risk/Environment Committee was discussed at Board meetings. established on 22 April 2004, replacing the The Committee, which meets at least half- Risk Management Committee which held its yearly, is responsible for ensuring that The Board Chairman, Gordon McKern is only meeting for the year in August 2003. Coliban Water has remuneration policies and ex officio on all Board Committees. practices that fit the strategic goals of the The Committee meets quarterly to ensure business. high standards of risk and environment management are maintained and processes

Directors' Meetings The number of meetings of the Board of Directors and Committees of the Board held during the year ended 30 June 2004 and the number of meetings attended by each director was:

BOARD OF DIRECTORS AUDIT COMMITTEE RISK MANAGEMENT EXECUTIVE MANAGEMENT RISK/ENVIRONMENT COMMITTEE REVIEW COMMITTEE COMMITTEE Director Eligible to Attended Eligible to Attended Eligible to Attended Eligible to Attended Eligible to Attended Attend Attend Attend Attend Attend G McKern 11 11 * * * * * * 1 1 K Rowland 11 9 3 3 1 1 P Cotton 11 11 4 4 1 1 N Harvey 11 9 4 4 1 1 1 1 J Dawson 11 9 4 4 1 1 F Reid 11 11 1 1 3 3 1 1 S McGuinness 11 11 1 1 3 3 1 1 *The Board Chairman, Gordon McKern, is ex-officio on this Committee

Coliban Water Annual Report 2004 39 OUR ORGANISATION CONTINUED

From left: Geoff Michell, Andrew Hunt, Neil Burns, Denise Pendleton, Greg Sheehan.

EXECUTIVE MANAGEMENT Executive Manager Customer Service Business Excellence and Administration We continued to utilise the Australian Chief Executive Denise Pendleton Business Excellence Framework as a tool for Geoff Michell BA, DipEd, GradDip(Comms Mgt), promoting sustainable and excellent GradDip(Media), GradCert(Mgt) DipCE, MBA, MIEAust, MAICD performance in our business. The principles • Strategic planning • Customer service of the ABEF continue to form the basis for • Business direction • Marketing and community relations the on-going development of our • Audit • Administrative services organisational culture. • Human resources Executive Manager Business Services • Industrial relations Contractor Management Andrew Hunt In the past year we have increased our focus Manager Projects BEc, CPA, FAICD on the Occupational Health and Safety Rick Jackel • Financial services aspects of contractor management. A new BE(Civil), GradCert (WaterEng.) • Secretariat Contract Administration Manual was • Projects • Treasury developed in accordance with the • Occupational Health & Safety • Business performance Department of Treasury and Finance • Quality Assurance • Information technology guidelines for the management of Management Systems Partnerships Victoria and other private Executive Manager Operations sector contracts. Neil Burns In 2003/04 we continued to test and improve our management systems through a DipCE Membership of Industry • Partnership program of ongoing performance Associations • Operations monitoring, internal and external auditing • Revenue and senior management and board review. Our principal industry and business • Headworks During the year we were one of the first association memberships enhance our Victorian Regional Urban Water Authorities organisational benchmarking and network Executive Manager Planning to take part in the WSAA AquaMark Asset capabilities as well as to participate in the Greg Sheehan Management Audit. A decision was also development of industry codes of practice. BAgSc, BBus taken during the year to commence a • Water Services Association of Australia • Asset management program to attain future certification of our • Infrastructure development Quality Assurance, Environmental • VWIA Victorian Water Industry • Capital planning Management System, and OH&S system Association • Environment to the appropriate nationally recognised • IWA Institute of Water Administration • Water Resource Management standards. • IWA International Water Association • AWA Australian Water Association ORGANISATION STRUCTURE • Australian Water & Wastewater Operators Association Risk/Environment Board Audit Committee Committee • AIM Australian Institute of Management • Society of Consumer Affairs Practitioners Executive Chief • Australian Human Resources Institute Management Executive Review Committe • Australian Institute of Company Directors Planning Projects Operations Business Customer Services Service & Administration

40 FURTHER INFORMATION

AUDITOR FREEDOM OF INFORMATION Our major service providers in 2004 were: Auditor General, Victoria The following officers have been appointed in accordance with the provisions of the • Henry Walker Eltin MAJOR CONSULTANCIES Freedom of Information Act 1982: www.hwe.com.au Coliban Water undertook during 2003/2004 • Campaspe Asset Management Services three major projects involving consultancies • Principal Officer – Chief Executive www.unitedutilities.com.au with a value exceeding $100,000, as listed • Authorised Officer – Corporate Secretary below: • Veolia Water During 2003/04 Coliban Water received two www.veolia.com.au • Envirosafe ($409,640) Freedom of Information applications which EPS Consultants, Nolan-ITU, Beca Pty Ltd, were processed in accordance with the Act. • EarthTech SMEC Victoria Pty Ltd, RPD Group, KDW www.earthtech.com.au ADDITIONAL INFORMATION Consultants, Feigel & Newell, Bryan & Annual reports for each of the above are The additional information listed in Appendix Margaret Main, Safety at Work Pty Ltd. available on their websites. Expected commitment for 2004/05 1 ‘FRD 22 Standard Disclosures in the Report $350,000. of Operations’ is available to the Minister, During the year Coliban Water adopted the Members of Parliament and the public on following WSAA Codes: • Dams Improvement request. Project ($1,254,390) • WSAA Sewage Code of Australia Additional information about Coliban EPS Consultants, SMEC Pty Ltd, GHD WSA 02-1999, Water’s operations and performance is Pty Ltd, Coffey Geosciences Pty Ltd, provided by the following sources: DamWatch, KDW Consultants, Hinds • WSAA Water Supply Code of Australia WSA 03-1999, Blunden P/L. Expected commitment for • Coliban Water Strategic Plan 2004-2009 2004/05 $500,000. • previous Annual Reports • WSAA Sewage Pumping Station Code • WaterBITS ($594,750) of Australia WSA 04-2001. • the Customer Charter, and Beca Pty Ltd, GHD Pty Ltd, TBS Planers, They were all adopted by Coliban Water as AFS & Associates, Tomkinson. Expected • our website www.coliban.com.au commitment for 2004/05 $80,000. current Technical Standards for our The additional information listed in Appendix contractors (design and installation works). MINOR CONSULTANCIES 1 ‘FRD 22 Standard Disclosures in the Report During 2003/2004 19 projects, involving the of Operations’ is available to the Minister, The Codes review and adoption process took engagement of consultants at a cost less Members of Parliament and the public on place across all relevant business sections than $100,000 each, were undertaken for a request. (Planning, Operations, Projects). total expenditure of $356,710. Copies of our publications are available from our offices at 37-45 Bridge St, Bendigo, WHISTLEBLOWERS Victoria. PROTECTION ACT 2001 No disclosures have been made or referred Other Relevant Reports and mechanisms for under the Whistleblowers Protection Act report users to gain additional information ssince its commencement January 2002. on economic, social and environmental activities: COMPLIANCE WITH THE BUILDING ACT Through its ongoing monitoring and • We continue to subscribe to the maintenance programs, over the past year Greenhouse Challenge of the Australian Coliban Water continued to ensure that Greenhouse Office. Annual report properties under its control and/or provided to and summary information ownership complied with the Building available at Act 1993. www.greenhouse.gov.au/challenge

ORGANISATIONAL CHANGES • We continue to subscribe to the Victorian There have been no significant changes in Biodiversity Strategy and this information the size, structure, ownership during the is available from 2003/04 reporting period. www.environment.vic.gov.au

DISCLOSURE OF MAJOR CONTRACTS • Further pollutant emissions information No contracts with a value greater than can be found through the National $10 million were entered into by Coliban Pollutant Inventory of the Water during 2003/04. Commonwealth Government at www.npi.gov.au PRIVACY All staff have been trained in the requirements for compliance with Coliban Water’s Privacy Policy.

Coliban Water Annual Report 2004 41 FURTHER INFORMATION CONTINUED

Implementation of the Victorian Industry Participation Policy

Contracts Commenced Overall level Full Time Skills & technology 2003/04 of local content % Equivalent Jobs transfer

A regional construction project 95% Existing = 3 N/a for upgrade works at Trentham New = 2 No. 1 Reservoir at Trentham Total = 5 $2,327,161 Contracts Completed 2003/04 Overall level Full Time Skills & technology of local content % Equivalent Jobs transfer

A regional project for design 90-100% New = 0 N/a & construction of water filtration systems Existing = 10 at Boort, Cohuna and Rochester Total = 10 $1,607,266

A regional construction project for 95% New = 6.2 N/a upgrade works at Reservoirs Existing = 5.8 at Crusoe and No. 7 (at Kangaroo Flat) Total = 12 Spring Gully (at Spring Gully) and Barkers Creek (at North Harcourt) $5,109,123

A project for design and construction 90-100% New = 8 N/a of wastewater reticulation and transfer Existing = 5 (sewer pipes and pump stations) for Total = 13 the regional townships of Gunbower and Leitchville $3,790,000 PERFORMANCE REPORT

Coliban Water Annual Report 2004 43 PERFORMANCE REPORT

44 PERFORMANCE REPORT

Coliban Water Annual Report 2004 45 PERFORMANCE REPORT

46 PERFORMANCE REPORT

Coliban Water Annual Report 2004 47