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East Gippsland Water Annual Report 2009/10 at a Glance East Gippsland Water’S Region

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East Gippsland Water Annual Report 2009/10 at a Glance East Gippsland Water’S Region East Gippsland Water Annual Report 2009/10 At a glance East Gippsland Water’s Region East Gippsland Water serves an area of 21,000 square kilometres in the far south east of Victoria, which boasts some of Australia’s most diverse and spectacular scenery and a population of some 41,000 people. The region’s world renowned beaches, lakes, high country and national parks are a natural drawcard for those seeking a lifestyle change, as well as for the many tourists that swell the region’s population numbers over the busy holiday periods. East Gippsland Water’s service area extends east from Lindenow, through to the region’s capital Bairnsdale, the holiday centres of Paynesville and Lakes Entrance, and on to the wilderness coast and Mallacoota near the New South Wales border. The Corporation also serves as far north as Dinner Plain in the High Country of the Victorian Alps. Water services are provided to more than 23,000 customers and wastewater services to over 19,900, spread across some 30 separate communities. Water and Sewerage Services Water Services Other Townships Genoa River Buchan River Snowy River Mt Hotham Cann River Brodribb River Genoa Dinner Plain Bemm River Omeo Mallacoota Betka River Swifts Creek Buchan Rocky River Cann River Tambo River Ensay Dargo Princes Hwy Nicholson River Orbost Bemm River Newmerella Nowa Nowa Mitchell River Bruthen Marlo Johnsonville Swan Nicholson Reach Lake Tyers Bairnsdale Lindenow Lakes Entrance Metung Walpa Eagle Point Lindenow South Paynesville Newlands Arm Melbourne Fact file (as at 30 June 2010) Water Wastewater Serviced properties Serviced properties - domestic assessments 20,655 - domestic assessments 17,789 - non domestic assessment 3,036 - non domestic assessments 2,154 Volume of water consumed (ML/y) 4,720 Volume of wastewater collected (ML/y) 2,675 Length of water mains (km) 888 Length of sewer mains (km) 593 Water treatment plants 9 Wastewater treatment plants 10 Water disinfection plants 17 Water recycled (%) 100 Separate water supply systems 9 Separate wastewater systems 10 The Corporation East Gippsland Region Water Corporation was initially established as East Gippsland Region Water Authority on 1 January 1995, by Ministerial Order and under powers conferred by the Water Act 1989. It became a Corporation on 1 July 2007 and trades as Contents Page East Gippsland Water. During the reporting period the responsible Minister was At a Glance Inside front cover The Hon Tim Holding MP, Minister for Water. In accordance with the Water Act 1989, East Gippsland Vision, Mission and Objectives 2 Water delivers the full range of retail water services including water harvesting, storage and drinking water Chairperson’s Report 2 supply. It also provides wastewater collection, treatment and recycling services, as well as trade waste services to industrial and commercial customers. Corporate Governance 4 Environmental Sustainability 7 About this Report Asset Management 16 This Annual Report details East Gippsland Water’s performance and achievements in all areas of its People and Culture 18 operations during 2009/10. It has been prepared in accordance with the Financial Reporting Direction FRD 30 - Standard requirements for the design and printing Water Quality 23 of annual reports. This defines the design and print specifications of annual reports to ensure consistency, Communication, Consultation cost minimisation and low environmental impact. and Education 28 Further information and previous Annual Reports are available at www.egwater.vic.gov.au. Management of Social and Economic Impacts 31 Financial Summary 33 Other Information 35 Performance Statements 37 Audit Certificate 43 Financial Report 45 Audit Certificate 76 Appendix: Whistleblower’s Protection Act Policy 78 Disclosure Index 86 ANNUAL REPORT - EAST GIPPSLAND WATER 2009/10 ANNUAL REPORT - EAST GIPPSLAND WATER 2009/10 1 Vision, Mission and Objectives East Gippsland Water’s Vision For East Gippsland Water to be recognised as a premier Corporation within the water industry, responsive to the needs of its community, the protection of the environment and the requirements of Government. Our Mission Chairperson’s Report Our core purpose is to ensure that… On behalf of the Board, and in accordance with • Our team provide quality water the Financial Management Act 1994, I am pleased and wastewater services to present the Report of Operations for East • Our approach is responsive to Gippsland Water for the year ending 30 June 2010. customers and the Government The Corporation continued to be highly proactive • Our operations are cost effective, in addressing the needs and requirements of the environmentally sensitive and conducted local community and Victorian Government, in a safe and efficient manner leading the way for water industries in a number of respects. We achieved a great deal and operated • We use sustainable management on a sound financial basis, during one of our principles in all our business activities most significant years for capital projects. Our objectives Our priorities continue to be driven by our Water Plan 2008-2013, which sets out our challenges, targets and In accordance with the Water Act 1989, East prices for the five year period. Along with our Water Gippsland Water has the following objectives, Supply Demand Strategy, this reflects our commitment which are reflected in its Corporate Plan – to ensure all customers have secure, high quality drinking water supplies well into the future, protected • Governance and Regulation against the impacts of changes in climate and extreme We are committed to meeting the requirements weather events that have bedevilled the region. of customers, government and stakeholders. Notable highlights and achievements • Environmental Sustainability for 2009/10 included: We are committed to environmental sustainability in all aspects of water and Aquifer Storage and Recovery wastewater service provision. Leading the way for Australia, East Gippsland Water • Asset Management and Development conducted the country’s first trial to assess the viability We are committed to optimising the use of of using an aquifer as a natural underground storage existing physical assets and developing new for drinking water. The trial concentrated on storing infrastructure for the delivery of water and water sourced from the Mitchell River and proved highly wastewater services and emerging requirements. successful. In June 2010 we applied for an operational licence from the regulator, Southern Rural Water, to • Management and Operations initially store 500ML from the Mitchell in the Latrobe We are committed to optimising the use of our Aquifer, with the potential to increase this up to 1.2GL human, financial and corporate resources. This will provide us with another storage option for water taken under our existing entitlement with the Mitchell River. It has great potential in ensuring long- term drinking water security for tens-of-thousands of East Gippsland Water customers, as well as having potential benefits for the wider community. Using an aquifer as a storage reduces water loss from evaporation and ensures the availability of high quality drinking water, free from risks of algal and airborne contamination. It also represents a more cost- effective water storage than constructing traditional infrastructure such as open basins, dams and tanks. 2 ANNUAL REPORT - EAST GIPPSLAND WATER 2009/10 ANNUAL REPORT - EAST GIPPSLAND WATER 2009/10 3 Major infrastructure openings The Environment June 2010 saw the official opening of a major new water For the sixth year running we achieved 100% reuse treatment plant and 715ML water storage for our region, across all our wastewater treatment plants and at Woodglen near Bairnsdale. These were constructed maintained our position at the forefront of Victorian as part of a five year, $67 million program of works water corporations in the area of water recycling. across East Gippsland, designed to ensure the long-term In the past year we also scooped a leading industry protection of drinking water supplies for all customers. award for our efforts to increase the sustainability of our With a combined cost of $22.5 million, the two business by purchasing environmentally sustainable goods projects were delivered some $3.5 million below and services. Entering the inaugural Strategic Purchasing budget. The water treatment plant was also Procurement Excellence Awards, we finished first in the delivered two years earlier than originally scheduled Sustainable Procurement category, as judged by leading in light of the impact of bushfires in 2006 and figures in the local government and public sectors. 2007 on water quality in the Mitchell River. Specifically, these initiatives will benefit around Sewerage Schemes 24,000 customers reliant on the Mitchell River The sewerage scheme for Banksia Peninsula was water supply system, from Lindenow through completed and we also investigated options for a to Nowa Nowa, including the communities of community-wide reticulated sewerage scheme for Bairnsdale, Paynesville and Lakes Entrance. Bemm River. This investigation was instigated by recommendations in East Gippsland Shire Council’s The year also saw the official opening of the upgraded Domestic Wastewater Management Plan. This identified water storage at Wy Yung, which had been lined the need for such a scheme as a high priority, to replace and covered, and two 6ML covered water storage the Bemm River community’s current reliance on tanks at Eagle Point to replace the existing open septic
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